JUST IN: RBZ To Shortly Introduce ZW$50 Bankote
The Reserve Bank of Zimbabwe (RBZ) has announced that it will soon be introducing a ZW$50 banknote.
The central bank also said withdrawal limits will be raised to ZW$2 000 for individuals while the current limits on mobile banking transactions, ZW$5000 per transaction, will be maintained. The aggregate limit per week will be ZW$35 000.
In a Monetary Policy Statement issued this Thursday, RBZ said:
As previously advised, the Bank shall soon be introducing a ZW$50 banknote to augment the current stock of banknotes in circulation. The Bank reiterates that banknotes, new or old, do not cause inflation in an economy since they do not increase money supply.
Cash payments are an alternative to other methods of transacting and do not constitute money creation. Price dynamics are influenced by the level of money supply in an economy as opposed to its composition (electronic money, transfers, cash, etc.), hence the Bank’s firm commitment to keeping the level of money supply growth under control through its conservative or hawkish monetary targeting framework.
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RBZ announced recently announced that it was working on the introduction of a ZW$50 banknote into the market for the convenience of the public.
The bank also dismissed reports that it was planning to introduce ZW$100 and ZW$200 banknotes saying there were no such plans for now.
This is happening amid the rejection of ZW$5 notes by informal traders who want larger denominations.
The rejection has been attributed to the recent surge in the prices of goods and services in the country.