By Blessing Chapwati
Gedion Gono
Harare(ZimEye)- Reserve Bank of Zimbabwe has printed a 500 million dollar note on 100% cotton material as paper runs out.
The new denomination gazetted on Thursday under statutory instrument 174 of 2008 goes into circulation on Friday together with a 200 million note.
“The note shall on the back have an imposition of dairy cows being milked mechanically and a miner drilling underground. The composition shall be 100% cotton, iridescent strip, text Reserve Bank of Zimbabwe embedded on the front of the note. It shall be 74mm by 148mm in purple,” the gazette said.
The new note is set to be the first of its kind amongst world currencies. The development confirms challenges that are being faced by the central bank in securing paper money after a Germany company terminated its supply contract mid this year after 50 years.
RBZ governor Gideon Gono recently introduced new denominations of 10, 50 million and 100 million dollar in paper denominations but have since lost value in less than a fortnight.
Zimbabwe’s central bank is struggling to adequately supply cash to banks enough to service depositors needs.
Some banks were last week netted in a scam, diverting cash meant for depositors to the parallel market before date of circulation.
Four banks had their executive directors and board members blacklisted by the RBZ from the banking and financial sector for the next five years.
Zimbabwe’s economy has been on a free fall since the violent land invasions in 2000. The month on month inflation is now estimated at more than 500 million percent. (ZimEye, Zimbabwe)
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