Zimbabwe's new money to have 100 trillion-dollar notes

Source: Agencies  |   2009-1-18  |     NEWSPAPER EDITION

ZIMBABWE'S central bank will issue a 100 trillion Zimbabwe dollar banknote, worth about US$33 on the black market, to try to ease desperate cash shortages.

As well as the Z$100 trillion dollar note, the Reserve Bank of Zimbabwe plans to launch Z$10 trillion, Z$20 trillion and Z$50 trillion notes, the state-run Herald newspaper reported on Friday.

"The Reserve Bank of Zimbabwe has introduced a new family of banknotes which will gradually come into circulation, starting with the Z$10 trillion," the Herald said, citing a central bank statement.

Prices are doubling every day and food and fuel are in short supply.

A cholera epidemic has killed more than 2,000 people and a deadlock between President Robert Mugabe and the opposition over power sharing has dampened hopes of any ending of the crisis.

Hyper-inflation has forced the central bank to keep issuing new banknotes which quickly become almost worthless. There is an official exchange rate, but most Zimbabweans resort to the informal market for currency transactions.

Previous banknote issues have done little to ease the plight of Zimbabweans.