Zimbabwe’s central bank introduced Z$500-million notes worth just $2 on Thursday in the latest sign of spiralling hyperinflation, only a week after issuing the Z$250-million bill.
The new highest denomination note would buy about two loaves of bread.
The central bank also introduced special agricultural cheques in Z$5-billion, Z$25-billion and Z$50-billion denominations to facilitate payments to farmers during the current selling season.
Farmers normally have to carry huge stacks of banknotes after selling their produce to state agencies, while consumers often carry large piles of cash with them for simple daily transactions.
The country is currently in the middle of the tobacco and maize marketing season.
”The Reserve Bank of Zimbabwe is pleased to announce the introduction of special instruments to cater for the marketing needs of our farmers in the form of ‘special agro cheques’, whose lifespan will run through December 31 2008,” the central bank said in a statement.
It said the cheques were freely tradable and would start circulating on Tuesday, while the new currency notes are available immediately.
Zimbabwe, which has the highest inflation rate in the world at about 165 000%, has been beset by long queues at banks as consumers seek banknotes to stock up on basic goods, the prices of which are constantly rising.
The Zimbabwe dollar, which had been officially pegged at 30 000 to the United States dollar before exchange rules were relaxed recently, currently trades at about 250-million to the greenback.
Zimbabweans had hoped elections on March 29 could help put an end to the country’s economic meltdown, which has also led to 80% unemployment, chronic food and fuel shortages and a flood of refugees to neighbouring states.
But the parliamentary election results have been disputed, and a run-off for the presidency has been delayed and is now due to take place by the end of July. — Reuters