Zimbabwe Central Bank Returns to Old Banknotes And Re-values Currency By 10 Billion

The Reserve Bank of Zimbabwe (RBZ) has reintroduced old banknotes and coins phased out more than three years ago as part of new financial measures that also saw the removal of 10 zeroes from the local currency, APA learned on Wednesday.

In the half-year monetary policy statement presented by RBZ governor Gideon Gono on Wednesday, the central bank reverted to banknotes and coins last used in 2004.

The move was necessitated by this month’s cancellation of a Germany supplier’s contract to supply paper to print banknotes.

“With effect from 1 August 2008, all monetary valuations have been re-evaluated by a factor of 10 billion, which effectively means we are removing 10 zeroes from the currency,” Gono said.

Existing bearer checks which have been used as currency since 2004 would be phased out on December 31.

The latest development would see all goods and services being denominated at old and revalued prices.

The RBZ also raised daily cash withdrawal limits with effect from Thursday to two trillion Zimbabwe dollars (old currency) or 200 Zimdollars revalued.

The previous 100 billion Zimdollar limit had been eroded given the recent wave of steep price increases.

Source African Press Agency

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