12 January,2009 07:01 AM IST | | Agencies
Zimbabwe's central bank will introduce a $50 billion note enough to buy just two loaves of bread as a way of fighting cash shortages amid spiralling inflation. The amount is equal to approximately Rs 100.
The country's acting finance minister, Patrick Chinamasa, made the announcement. Although he did not give the date on which the $50 billion and new $20 billion notes would come into circulation, an official at the Reserve Bank of Zimbabwe said the notes would be distributed to all banks by today.
Zimbabwe is grappling with hyperinflation now officially estimated at 231 million per cent, and its currency is fast losing its value.
When the government issued a $10 billion note just three weeks ago, it bought 20 loaves of bread. That note now can purchase less than half of one loaf. Realising the worthlessness of the currency, the RBZ has allowed most goods and services to be charged in foreign currency.
