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Zimbabwe issuing new bank notes to revalue currency

Zimbabwe will issue new bank notes from August 1 that will knock 10 zeros off the dollar and revalue a 10 billion dollar note to equal one zimdollar, the Central Bank governor said on Wednesday.

"Ten billion dollars today, will as from August 1 be revalued to one zimdollar dollar," Gideon Gono Gideon Gono is the Governor of the Reserve Bank of Zimbabwe<ref name=>Zimbabwe: 'Mugabe downfall within six months', June 24, 2007. BBC News and former CEO of the Jewel Bank, formerly known as the Commercial Bank of Zimbabwe.  said at a function where he announced a raft of economic measure.

The country's 84-year-old President Robert Mugabe Mugabe redirects here.

For other uses, see Mugabe (disambiguation).
Robert Gabriel Mugabe KCB (born on February 21, 1924) is the President of Zimbabwe.[1] He has been the head of government in Zimbabwe since 1980, first as Prime Minister[2]
 was present at the event.

"With effect from August 1, the Reserve Bank is issuing new currency notes, not bearer One who is the holder or possessor of an instrument that is negotiable—for example, a check, a draft, or a note—and upon which a specific payee is not designated.  cheques which some have been counterfeiting counterfeiting, manufacturing spurious coins, paper money, or evidences of governmental obligation (e.g., bonds) in the semblance of the true. There must be sufficient resemblance to the genuine article to deceive a person using ordinary caution. ," Gono said in an announcement aimed at addressing acute cash shortages rocking the inflation-battered nation.

The government will also encourage the use of coins which lost value due to hyperinflation Hyperinflation

Extremely rapid or out of control inflation.

Notes:
There is no precise numerical definition to hyperinflation. This is a situation where price increases are so out of control that the concept of inflation is meaningless.
, now running at a record 2.2 million percent.

A loaf of bread Wednesday sold for 200 billion zimdollars in Harare.

"We are going to require that prices be denominated in the old and the new currencies," Gono added.

A new 100-billion-dollar bank note came into circulation in Zimbabwe last July 21 in a bid to tackle rampant cash shortages, joining about half a dozen new high denomination Denomination

The stated value found on financial instruments.

Notes:
This term applies to most financial instruments with monetary values. The denomination for bonds and securities would be face value or par value.
 notes already issued this year.

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.

Zimbabwe's inflation rate, already the world's highest, hit an astronomical as·tro·nom·i·cal   also as·tro·nom·ic
adj.
1. Of or relating to astronomy.

2. Of enormous magnitude; immense: an astronomical increase in the deficit.
 2.2 million percent after Mugabe's June 27 re-election, the bank announced earlier this month.

The figure is the first from the authorities in Zimbabwe since the announcement of the rate for February, when it was put at 165,000 percent.

But economic analysts believe that the current inflation figure could be well above 10 million percent mark.

Mugabe had said this month that increasing levels of production was key to efforts to tame inflation.

Once one of Africa's best performing economies, Zimbabwe has been in meltdown meltdown

Occurrence in which a huge amount of thermal energy and radiation is released as a result of an uncontrolled chain reaction in a nuclear power reactor. The chain reaction that occurs in the reactor's core must be carefully regulated by control rods, which absorb
 since the turn of the decade when Mugabe embarked on a controversial land reform programme which saw thousands of white-owned farms seized by the state.

Mugabe often blames Zimbabwe's economic woes on a package of targeted sanctions imposed by the West.

Inflation first passed the 1,000 percent threshold in May 2006 and has been rising almost continuously ever since.

The government has tried a series of measures to curb inflation, including ordering shops and businesses to slash the price of goods last year.

Mugabe warned Wednesday that he could impose tough emergency measures against businesses he accused of profiteering prof·it·eer  
n.
One who makes excessive profits on goods in short supply.

intr.v. prof·it·eered, prof·it·eer·ing, prof·it·eers
To make excessive profits on goods in short supply.
 and fuelling inflation.

"Business people ...don't drive us further than you have done in the past," Mugabe said at the Central Bank function.

"If you drive us more we will impose emergency measures and we don't want to place our country in a situation of emergency rules, they can be tough rules," he warned.
Copyright 2008 AFP Global Edition
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Author:AFP
Publication:AFP Global Edition
Date:Jul 30, 2008
Words:483
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