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Zimbabwe: 10-Million-Dollar Bill
Zimbabweans will be soon lining their pockets with 10-million-dollar bills. The central bank annouced Thursday it would increase the denomination of the nation's highest bank note more than tenfold to keep pace with the world's highest inflation rate, officially estimated at 25,000 percent annually. Independent financial institutions say real inflation is closer to 150,000 percent. The new 10-million note is the equivalent of about $4 at the dominant black market exchange rate.In an effort to end chronic cash shortages and long, chaotic lines at banks and automated teller machines, the bank will issue the new notes on Friday along with 1-million and 5-million dollar bills, said Reserve Bank Governor Gideon Gono. The highest existing note, introduced last month, is 750,000 Zimbabwe dollars. A hamburger at an ordinary cafe costs about 15 million Zimbabwe dollars ($6). But that price has trebled this month amid shortages of bread, meat and most other basic goods. Acknowledging the inflation crisis, Gono said individuals from Friday would be allowed to withdraw an increased limit of 500 million Zimbabwe dollars ($200) in a single day, up from 50 million. Posted by: Fred 2008-01-18 |
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