Zim unveils Z$500m note
2008-12-12 19:05
Special Report
A classical music presenter for the BBC has been arrested and is in custody in Zimbabwe.
Harare - Zimbabwe's central bank on Friday introduced a Z$500m note, as the African country struggles to cope with the world's highest inflation and crippling currency shortages.
The half-billon note, worth about $10, was released together with a Z$200m bill, which the central bank said in a statement was introduced for the "convenience" of the public.
Finance minister Samuel Mumbengegwi announced the new bills in a government gazette, bringing to 29 the number of new notes put into circulation this year alone.
Just last Thursday, Zimbabwe introduced a Z$100m bill that at the time was worth $14. One week later, it's worth less than 50c.
Zimbabwe's highest inflation was last estimated in July at 231 million percent but is now believed to be much higher.
The central bank struggles to print money fast enough to keep pace with prices that rise several times in a day.
Due to currency shortages, cash can now only be withdrawn once a week from banks. Ordinary people can take out Z$500m a week while companies are permitted to withdraw Z$50m.
Winding queues in banks are commonplace in Zimbabwe as people take hours to withdraw money which is still not enough to see them through the day, while others sleep outside banks to get money the next day.
Once the region's breadbasket, the country is now battling widespread food shortages while cholera has killed nearly 800 people since late August, according to the United Nations.
- AFP