Zimbabwe prints new high denomination dollar note

HARARE - Zimbabwe's central bank today unveiled a Z$100,000 note and said it would not hesitate to introduce higher denominations in future as the country battles with the world's highest inflation rate.

The southern African country is the throes of a deep economic crisis shown in shortages of foreign currency and fuel, rising unemployment and inflation above 1000 per cent, forcing people to carry huge wads of cash which often buy little.

Reserve Bank of Zimbabwe governor Gideon Gono said a new 100,000 Zimbabwe dollar bearer cheque (worth $1.54) would come into circulation on Thursday, June 1.

The bearer cheque note was introduced three years ago as a temporary measure to plug a shortage of bank notes in the face of rising inflation.

"As monetary authorities we continue to assess the market developments and we will not hesitate to come to the market with any other denominations we deem appropriate for the convenience of the banking public," he said in remarks broadcast on national television.

"If need be we will go higher and we will continue with these introductions," he added.

Zimbabweans need bags to carry money even on basic grocery shopping trips.

Gono, who has been given the job of turning around an economy in its eight year of recession, told Reuters this month that inflation would spiral to 1200 per cent before easing to 400 per cent by December and below 50 per cent by June next year.

- REUTERS