Zimbabweans formed queues at banks on Saturday to beat a December 31 deadline to hand in a currency series phased out by the central bank.
Reserve Bank chief Gideon Gono declared that the Z$200 000 note would become worthless as he introduced three new banknotes in a bid to tackle a shortage of the local currency in the country.
Depositors wishing to withdraw scarce cash and those handing in the expiring bills formed parallel queues in banks in the capital as the central bank ordered banks to extend business hours on Saturday and Sunday.
“I am just hoping today [Saturday] I will be able to get cash,” said George Chapfunga, waiting in a queue in central Harare, saying he had been coming to the bank since Wednesday.
Some depositors were confused as some banks were still dispensing the bank notes due to expire on Monday while some shops were refusing to accept the Z$200 000 bearer cheque.
Bearer cheques, essentially money printed on ordinary paper, were introduced in 2003 as a stop-gap measure to ease currency shortages caused by skyrocketing inflation. They are valid for a year.
Banks were ordered to open this weekend to dispense cash and accept the expiring banknotes.
“On Sunday December 30 2007, no other banking services will be provided by banks and building societies except acceptance of deposits from both individuals and corporates,” the Reserve Bank said in a notice on Saturday.
The bank has put a ceiling on deposits, and individuals or organisations wishing to deposit amounts exceeding the limits have to explain the source of the money.
Gono blames the cash shortages on “cash barons and baronesses” he said were circulating the cash outside the banking system.
Zimbabwe is in the eighth year of economic recession characterised by record inflation and high unemployment which has reduced at least 80% of the population to living below the poverty threshold. — AFP