The Zimbabwe Gazette Daily News Online - RBZ to introduce $1 million note

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RBZ to introduce $1 million note

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By Talent Tsatsa, on January 06 2008 18:48

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The Reserve Bank of Zimbabwe governor Gideon Gono plans to introduce a $1 million note by mid-January, The Zimbabwe Gazette has learnt.

Sources at the Central Bank revealed that the persistent cash crisis had forced Gono to consider bringing a higher denomination note.

The sources said the governor has indicated plans to introduce higher denominations that will ease the cash crisis that has spilled into its third month.

Banknote shortage spilled into the New Year with desperate shoppers flocking to banks as most businesses re-opened last week.

"After failing to contain the crisis during the Christmas holidays, there are plans to introduce higher denominated notes to complement the ones in circulation. This development is not going to take long," said a source.

He said Gono was against the removal of zeroes, as he once did in 2005, as a possible solution to the ongoing cash crisis.

Earlier this month, Gono introduced $750,000, $500,000 and Z$250,000 notes and announced that the Z$200,000 bill, which he says is mostly used by foreign currency traders -- would be put out of circulation on January 1.

He later reversed the decision to suspend the $200 000 note, which Gono says was mostly siphoned out of the banking system by black market foreign currency dealers.

The moves by the Central banks have failed to ease the cash crisis as banks struggled to cope with long queues by yesterday.

Economic analysts have said the banknote crisis could only be resolved through sound economic policies, not piecemeal measures such as printing more notes.

Critics blame the economic crisis on Mugabe's controversial policies, such as the seizure of white-held farms to resettle landless blacks often lacking in skills and financial resources.

Zimbabwe's economic crisis has coincided with the near-destruction of its once vibrant commercial agriculture sector.

Mugabe, 83 and in power since independence from Britain in 1980, denies ruining one of Africa's promising economies and says it has been sabotaged by western nations opposed to his land reforms.

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Comments From A Zimbabwean Forum
10 000 000 000 000 000(google or gazillion I dnt know) will be better at least my mum wil be out of e everyday ques. every time i 4n her she is always whispering.............. 'I will 4n u when i get home mobile yangu ingabiwe...'
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That is one Billion , in the old money !!!

Ridiculous
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This is insufficient. R 100 was fetching $ 20 MILLION on the parallel market in December.

So at the very minimum we would need $5 MILLION, $10 MILLION and $20 MILLION notes.

$1 million is a waste of time and will be eroded by inflation by the time it comes
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Gono is a professor of fcking things up.
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He is in fact extremely intelligent. He has created the ideal conditions for legalised theft whilst making it look as if he is incompetent. Quite smart actually.
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Gideon is not competent at all.....he is too impetuous and overzelous for nothing.......
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The $1 million was suppose to be introduce with the rest in December. Unfortunately the transit truck disappeared on its way to the Reserve Bank from the printers. I don't know if he has reprinted a different one or the truck was recovered.
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For crying out loud....he blamed the floods for his skewed shenanigans.......
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this idiot, when is he gonna learn. I bet the paper, ink, manpower, and transport needed to print the $1 million bill is worth more than $1 million. He be better off putting out a $5 million and upwards bills.

Hamheno
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The 30 tril he printed in new notes...did it have any bullion backing or it was just paper to please the masses...
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I don't think Zimbabwean currency, or any currency in the world for that matter, is still backed by bullion nowadays. It is just a promise to pay by a central bank somewhere.

The days of the gold backed currency are over.
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Thanks for the infor...am not an economics person....so if the economist say money is a store of value what value are we talking of in zimbabwean context?Fiat currency?
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By: chimuti (Guest) on January 09 2008 15:00

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By: chimuti (Guest ) on January 09 2008 15:00

1 million is a waste of time whom is he fooling?Zim needs 5m,10m,20,50m 100m and the 1billion note. Wake Up Gono.

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