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Zimbabwe Introducing $50 Note - Cross

Zimbabwe Introducing $50 Note - Cross

Eddie Cross, a member of the Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee (MPC) has said Zimbabwe is set to introduce a $50 note in an endeavour to double the cash that is in circulation to $3 billion.

This comes when markets have rejected the $2 note while the $5, $10 and $20 notes are proving to be tiny considering the inflation in the country.

Zimbabweans are exhibiting mixed feelings over the alleged move. Some say the $50 note is still too small urging the government to introduce $200, $500 or have the two of the highest denominations to afford a loaf of bread.

The $50 cannot buy a loaf of bread, which is priced at $70 on average.

Some argue that the move is not addressing the current issues which include lack of change that has resulted in businesses fixing prices.

Zimstat says prices have been stable or slightly falling over the recent few months while competition among businesses is coming back.

Some observers believe that having more Zimbabwe dollars in circulation will likely affect the foreign currency exchange rate that has been stable for months.

Others believe the end result would be a 2008 scenario where the central bank ended up printing large denominations including $1 000 000 000 000.

More: Happi Zengeni

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