Long Queues Form As Zimbabwe Launches New Bank Notes

Long queues of depositors formed outside Zimbabwean banks on Monday as an acute cash shortage persisted despite the recent launch by the central bank of two new higher denomination banknotes.

The new denominations – 10,000 and 20,000 Zimdollar notes (equivalent to US$100 and US$200 at the official exchange rate) – came into circulation on the same day that the Reserve Bank of Zimbabwe (RBZ) reviewed upwards daily withdrawal limits from banks.

The new notes and the increase in withdrawal limits from 1,000 to 20,000 Zimdollars are expected to cushion depositors from the shortage of cash experienced during the past month.

Long and winding queues were observed outside most banks in the capital Harare as desperate depositors jostled for an opportunity to withdraw their money.

Zimbabwe has experienced a severe cash crisis from late 2007, forcing the RBZ to regularly review daily withdrawal limits to cushion consumers from runaway inflation of more than 11 million percent.

Depositors have been spending almost the whole day in queues for cash, only to be allowed to withdraw just enough for bus fare.

Source African Press Agency

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