Zim unveils new banknotes

HARARE – Zimbabwe central bank governor Gideon Gono on Wednesday night announced a new family of higher denominated bearer cheques in a two-pronged attempt to beat cash barons illegally hoarding money and to alleviate cash shortages gripping the country.

In a televised address to the inflation ravaged nation last night, Gono abolished the Z$200 00 bearer cheque that was the highest value note before last night and gave Zimbabweans until the 31st of December to exchange the notes at banks. The Reserve Bank of Zimbabwe (RBZ) governor unveiled new Z$250 000, Z$500 000 and Z$750 000 bearer cheques that come into effect immediately.The new highest denomination bearer cheque is enough to buy only one loaf of the lowest quality bread that sells at about Z$800 000, a vivid illustration of Zimbabwe’s rampant inflation estimated at above 14 000 per cent.”With effect from 1 January 2008, the Z$200 000 bearer cheque ceases to be legal tender.Starting tomorrow (Thursday) all holders of these bank notes should bring them back to the banks,” Gono said.Bearer cheques are not money but are promissory notes first introduced by the central bank at the height of cash shortages four years ago.They function in the same way as money.ZimOnlineThe Reserve Bank of Zimbabwe (RBZ) governor unveiled new Z$250 000, Z$500 000 and Z$750 000 bearer cheques that come into effect immediately.The new highest denomination bearer cheque is enough to buy only one loaf of the lowest quality bread that sells at about Z$800 000, a vivid illustration of Zimbabwe’s rampant inflation estimated at above 14 000 per cent.”With effect from 1 January 2008, the Z$200 000 bearer cheque ceases to be legal tender.Starting tomorrow (Thursday) all holders of these bank notes should bring them back to the banks,” Gono said.Bearer cheques are not money but are promissory notes first introduced by the central bank at the height of cash shortages four years ago.They function in the same way as money.ZimOnline