Tuesday, 4 November 2008

The shape of things to come?

ZIMBABWE will soon introduce higher denomination banknotes, of up to one million Zimbabwean dollars, in a bid to ease the effects of hyperinflation, the country's central bank said on Monday.

The Reserve Bank of Zimbabwe (RBZ) lopped 10 zeros off the currency on August 1, but it continues to lose value as inflation surges.

The government put inflation at 230 million per cent for July, the world's highest, although the Washington-based Cato Institute foundation estimates it now at 10.2 quadrillion per cent.

Currently, the highest denomination banknote is Z$50,000, not enough to buy a loaf of bread, and the RBZ plans to introduce Z$100,000, Z$500,000 and Z$1 million (about NZ$13.66) banknotes in a bid to help consumers battling to make simple purchases.


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