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Zimbabwe c.bank says new bank notes imminent
Real estate news By Reuters South Africa
Wed 21 Nov 2007, 14:19 GMT
Zimbabwe will soon issue new bank notes, for the second time in as many years, to try to control rampant inflation and curb black market trade, central bank Governor Gideon Gono said on Wednesday. The southern African country is in the grips of a severe economic crisis -- blamed on President Robert Mugabe's policies -- and battling the highest annual inflation rate in the world, at nearly 8,000 percent. Zimbabwe lopped off three zeroes from its currency in July 2006 and phased out old notes within three weeks in a programme dubbed "Sunrise".
The general public, as well as the financial sector are hereby forewarned that Sunrise Two is now imminent," Gono told reporters. "The Reserve Bank has now put in place all the machinery, to enable the implementation of a short and precise change-over programme, which would be completed in a matter of a few days." Gono declined to say exactly when the currency change would take place and how many zeroes would be dropped. "The actual change-over will be done without prior notice beyond what we are saying here."
He added that Zimbabwe's inflation would not deter the central bank from effecting a currency change. "Last time we removed three zeroes. But they've returned. Now we are determined not to allow them to return," Gono said. "Some have said we are in a hyperinflationary environment and can therefore not bring in a new currency. Nothing could be further from the truth."
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