RBZ unveils new $50 note

THE Reserve Bank of Zimbabwe (RBZ) yesterday issued a $50 dollar note, to add to the $2, $5, $10 and $20 notes which are already in circulation.

In a statement, RBZ governor John Mangudya said the higher denomination, engraved with the picture of national heroine Mbuya Nehanda, had been issued under Statutory Instrument 196 of 2021.

The $50, almost equal to United States 59 cents, comes into circulation today, with $360 million to be issued through the normal banking channels.

The central bank announced several months ago that it would issue higher denominations, with the market expressing fear the move could result in inflation.

“The Reserve Bank of Zimbabwe (the bank) wishes to advise the public that the $50 banknote issued on July 6, 2021 through Statutory Instrument 196 of 2021 will be introduced into circulation on July 7, 2021,” RBZ governor John Mangudya said in a statement yesterday.

“The bank shall release $360 million through the normal banking channels and banks are expected to fund their respective accounts held at the Reserve Bank and collect the cash from July 7, 2021.”

Economists have said one of the major concerns of introducing a higher denominated note would be its negative effects on inflation as it would increase money supply.

But Mangudya has, in the past, allayed the fears, saying the central bank would closely monitor how much liquidity would be released alongside the new bank notes.