These days in my neighbourhood, quite close to Lobels bakery, buying a Lobel’s bread requires at least 3 notes. Zimbabwe currently has only $10 ZWL, $5 ZWL and a few $20 ZWL notes in circulation at the moment after all the other smaller denominations fell by the wayside despite the RBZ insisting they were legal tender. So you either need as much as 14 notes to get a loaf. The number doubles if you need two and just like a simple thing like buying breakfast stuff already requires you to have a sackful of money.
The RBZ is now finally ready to fix this. As last week ended the central bank made the announcement that they were going to be printing. New $50, $100 and $200 banknotes will be introduced by the bank in coming days-soon they said. First we will get the $50 ZWL note whose introduction is imminent according to Economist Eddie Cross. There is no need to doubt Mr Cross’s revelations. He has leaked a lot of such communiqués probably with the Central Bank’s tacit blessing at least.
The only new note which is due to come in shortly is the $50 note and I’m not certain when that is going to be available but it is in the process of preparation.
There are already plans to introduce some higher denomination notes this year.
Some time ago we made a decision in the MPC to introduce new $200, $100 and $50 dollar notes.
I understand that this is being dealt with by the Governor working with the President because the President has to approve the designs and everything else.
But I understand that the $50 note will be available early in the New Year.
These days the Zimbabwean notes have been reduced to the change role. There are just simply note enough of them. Often they are used in micro-transactions that are under US$1.00. Traders often give them out as change based on a rate of between 85-100.00 in tuck-shops. Will these new notes change anything?