Zim revaluates it's dollar
HARARE – Zimbabwe will issue new bank notes from August 1 that will knock 10 zeros off the dollar and revalue a 10 billion dollar note to equal one zimdollar, the Central Bank governor said yesterday. “With effect from August 1, all monetary values will be at 1: one billion zimdollars. We are removing 10 zeros.
Ten billion dollars today, will as from August 1 be revalued to one zimdollar dollar,” Gideon Gono (photo) said at a function where he announced a raft of economic measure. “With effect from August 1, the Reserve Bank is issuing new currency notes, not bearer cheques which some have been counterfeiting,” Gono said in an announcement aimed at addressing acute cash shortages rocking the inflation-battered nation.
A loaf of bread yesterday sold for 200 billion zimdollars in Harare. “We are going to require that prices be denominated in the old and the new currencies,” Gono added. A new 100-billion-dollar bank note came into circulation in Zimbabwe last week in a bid to tackle rampant cash shortages, joining about half a dozen new high denomination notes already issued this year.
Zimbabwe’s inflation rate, already the world’s highest, hit an astronomical 2.2 million percent after Mugabe’s June 27 re-election, the bank announced earlier this month. The figure is the first from the authorities in Zimbabwe since the announcement of the rate for February, when it was put at 165,000 percent. But economic analysts believe that the current inflation figure could be well above 10 million percent mark.
Inflation first passed the 1,000 percent threshold in May 2006 and has been rising almost continuously ever since. The government has tried a series of measures to curb inflation, including ordering shops and businesses to slash the price of goods last year.
President Robert Mugabe warned yesterday that he could impose tough emergency measures against businesses he accused of profiteering and fuelling inflation. Business people ...don’t drive us further than you have done in the past,” Mugabe said at the Central Bank function. “If you drive us more we will impose emergency measures and we don’t want to place our country in a situation of emergency rules, they can be tough rules,” he warned.
Ten billion dollars today, will as from August 1 be revalued to one zimdollar dollar,” Gideon Gono (photo) said at a function where he announced a raft of economic measure. “With effect from August 1, the Reserve Bank is issuing new currency notes, not bearer cheques which some have been counterfeiting,” Gono said in an announcement aimed at addressing acute cash shortages rocking the inflation-battered nation.
A loaf of bread yesterday sold for 200 billion zimdollars in Harare. “We are going to require that prices be denominated in the old and the new currencies,” Gono added. A new 100-billion-dollar bank note came into circulation in Zimbabwe last week in a bid to tackle rampant cash shortages, joining about half a dozen new high denomination notes already issued this year.
Zimbabwe’s inflation rate, already the world’s highest, hit an astronomical 2.2 million percent after Mugabe’s June 27 re-election, the bank announced earlier this month. The figure is the first from the authorities in Zimbabwe since the announcement of the rate for February, when it was put at 165,000 percent. But economic analysts believe that the current inflation figure could be well above 10 million percent mark.
Inflation first passed the 1,000 percent threshold in May 2006 and has been rising almost continuously ever since. The government has tried a series of measures to curb inflation, including ordering shops and businesses to slash the price of goods last year.
President Robert Mugabe warned yesterday that he could impose tough emergency measures against businesses he accused of profiteering and fuelling inflation. Business people ...don’t drive us further than you have done in the past,” Mugabe said at the Central Bank function. “If you drive us more we will impose emergency measures and we don’t want to place our country in a situation of emergency rules, they can be tough rules,” he warned.
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