Zimbabwe to commence distribution of new banknotes

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The Reserve Bank of Zimbabwe (RBZ) is set to begin circulating new banknotes on Monday, as part of ways to ease a severe cash shortage amid a deepening economic crisis in the South African country.

Last week, the central bank said it had started printing higher denominated notes as part of its currency reforms following the ban on the use of the US dollar in June.

This introduction marks the final phase in the return of the Zimbabwe dollar.

Economists, however, warn that the printing of cash might further fuel hyperinflation that is now the second-highest in the world after Venezuela, but the RSV says the new two and five dollar notes will not increase the overall money supply.

Zimbabwe has been plagued by cash shortages for the past three years with most ATMs no longer dolling out cash.

The country is experiencing its worst economic crisis in a decade, with inflation at more than 300%, while the country is also plagued by shortages of foreign currency, fuel, electricity and basic foods.




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