Govt set to introduce $200 bank note

ZIMBABWE is set to introduce a $200 note to anchor the current family of local bank notes whose value has been eroded by inflation. State media reports that government, through the central bank, will this year put into circulation, new $50, $100 and $200 bank notes with the lowest of the three set to be introduced first.

The move is set to “increase physical money supply, curb cash shortages and improve transacting convenience”.

The country currently has $2, $5, $10 and $20 notes in circulation.

But these have since made it inconvenient for locals who now find themselves having to carry wads of bank notes with them to undertake normal over-the-counter transactions.

While the country now uses mobile money in tandem with physical cash, most locals still require cash for some petty transactions such as paying for transport which has largely remained a cash-based industry.

Currently, around $1,4 billion in cash is circulating, up from around $400 million a year and half ago.

Former opposition legislator and now RBZ Monetary Policy Committee (MPC) member, Eddie Cross ( pictured), told State media that “the only new note which is due to come in shortly is the $50 note”.

“There are already plans to introduce some higher denomination notes this year,” he said.

“Some time ago we made a decision in the MPC to introduce new $200, $100 and $50 notes.

“I understand that this is being dealt with by the governor working with the President because the President has to approve the designs and everything else. But I understand that the $50 note will be available early in the new year.”

Government has adamantly refused to dump the use of the local currency even when there have been clear signs the local market preferred the United States dollar which is now largely being used in both formal and non-formal transactions. —