Zimbabwe introduced Z$100bn note

Grappling with record 2.2 million per cent inflation, Zimbabwe has introduced a new 100-billion-dollar bank note in a bid to tackle rampant cash shortages.

According to the Australian , the new note will go into circulation from Monday.

In January, a 10-million-dollar note was issued, then a 50-million-dollar note in April.

In May, notes for 100 million and 250 million dollars were issued, swiftly followed by those for five billion, 25 billion and 50 billion.

The new note is equal to just one US dollar.

As high as they are, though, the new bills still are not enough to buy a loaf of bread. They can only buy four oranges.

The southern African nation has been ravaged by hyper-inflation, which shot up from 165,000 per cent in February to 2.2 million in June.

Independent economists however believe the official inflation figure is grossly understated, estimating it could be running between 10 million and 15 million per cent.

Zimbabwe's chronic economic crisis has left at least 80 per cent of the population living below the poverty threshold and shortages of basic goods in shops.

Gideon Gono, governor of the Reserve Bank of Zimbabwe, said the new notes are for "the convenience of the banking public and corporate sector" in light of price hikes.

The new bills are actually bearer cheques and have an expiration date of December 31.

Zimbabwe has not had formal currency since the introduction of bearer checks as a temporary measure in 2003.

Source: Times of India