The Zimbabwe government has decided to extend the life of its temporary bank notes by another six months as the government works on introducing a new currency, state radio reported on Saturday.
Two years ago Zimbabwe introduced a temporary form of currency called ”bearer cheques” to ease chronic cash shortages that hit the country as a result of spiralling inflation.
”The Ministry of Finance has announced that the expiry date of Reserve Bank of Zimbabwe bearers’ cheques, which was postponed to 31 December 2005 by the Finance Act has once again been postponed to June 30 next year,” the radio report said.
Initially designed as a stop gap measure, Zimbabweans have grown used to the bank bills that come in denominations of Z$20 000, Z$10 000 and Z$5 000 (25, 12 and six US cents). But their value has been severely eroded by inflation, now at 502%.
Those wanting to make big purchases frequently have to hand over bags of money while customers are seen wheeling out suitcases full of money from their banks.
Reserve Bank Governor Gideon Gono has promised to introduce a new permanent currency this year. But economists have warned it is futile to introduce a new currency until inflation is brought down.
Gono says aims to reduce inflation to around 80% by the end of 2006. – Sapa-DPA