Zimbabwe: Money..Money Money

ZIMBABWE

Money, Money, Money

Zimbabweans formed lines outside banks on Tuesday in hopes of getting their hands on the country’s first Zimbabwe dollar notes issued since 2009.

The country’s central bank hopes the new notes will ease the severe cash shortages while playing down fears that the new dollars will worsen the inflation rate, the BBC reported.

The currency was previously scrapped a decade ago due to hyperinflation, forcing Zimbabweans to rely on US dollars, South African rands, as well as other foreign currencies.

The government had previously attempted to counter the cash shortage by issuing bond notes and coins. In February, it created a new electronic currency called the Real Time Gross Settlement (RTGS) dollar, but inflation continued to soar.

In June, Reserve Bank of Zimbabwe banned US dollars and other foreign currencies but they flourished on the black market, while many — especially businesses — shunned the Zimbabwe dollars.

Meanwhile, the central bank has said the two- and five-Zimbabwe dollar notes will not increase the overall money supply even as many remain convinced that the cash injection will stoke inflation.

Zimbabwe’s current inflation rate stands at around 300 percent, according to the International Monetary Fund.