Zim issues $50 000 note
24/01/2006 22:22  - (SA)  

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Harare - Zimbabwe's inflation-weary citizens will soon have a new 50 000-dollar bank note to make shopping easier, announced the central bank governor on Tuesday as he warned that the country's spiralling levels of inflation had not yet peaked.

Zimbabwe introduced a temporary form of currency - dubbed bearer cheques - three years ago to alleviate chronic cash shortages brought on by inflation.

Gono said: "We are pleased to announce that with effect from February 01 2006, a higher denomination of 50 000 bearer cheques would be added to the denominational family of bearer cheques so as to bring added convenience to the transacting public."

Monetary policy statement

But, he said his bank was still working on a new permanent form of currency to be unveiled later this year.

Since their introduction in 2003, the purchasing power of bearer cheques, which came in 5 000 to 10 000 and 20 000-dollar denominations had been eroded by inflation that last month reached 586%.

Gono warned that Zimbabweans could expect inflation to shoot up to between 700 and 800% by March.

Gono said: "We urge the nation not to panic when we reach that peak", predicting that inflation would fall to about 230% by year's end.

Zimbabweans often had to take large wads of notes into shops to make cash purchases, while those withdrawing large sums from commercial banks could be seen carrying it away in suitcases.

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