By Cris Chinaka
HARARE (Reuters) - Zimbabwe's central bank will introducenew higher-value 100 billion Zimbabwe dollar notes on Monday aspart of a desperate fight against spiralling hyperinflation,the bank said.
Zimbabweans are suffering chronic shortages of meat, maize,fuel and other basic commodities due to the collapse of theonce prosperous economy, which critics blame on PresidentRobert Mugabe's policies, including his violent seizure ofwhite-owned farms.
Central bank Governor Gideon Gono announced on Wednesdaythat inflation had surpassed 2.2 million percent, though someeconomists put it much higher.
In a notice in the official Herald newspaper on Saturday,Gono said the Reserve Bank of Zimbabwe would introduce 100billion dollar special agro-cheques (notes), to help consumerswho currently need to carry large wads of cash even for simpletransactions.
"This new $100 billion (2,214 pound) special agro-chequewill go into circulation on Monday," the notice said.
The central bank has been printing higher denominationbanknotes to keep pace with soaring prices. The most valuablebank note currently in circulation is worth Z$50 billion.
Gono said he was also considering raising the amount ofcash people could withdraw daily from their bank accounts. Thecentral bank has imposed a withdrawal limit of Z$100 billion,but this is only enough for two trips on an urban commuter busor two loaves of bread -- if one can find it.
The Zimbabwe dollar, which had been officially pegged at30,000 to the U.S. dollar before exchange rules were relaxedrecently, now trades at about 800 million to the greenback.
Besides struggling with shortages of basic goods andservices, Zimbabweans also spend long hours in bank queuestrying to withdraw their money.
The central bank says the limits on cash withdrawals aredesigned to curtail a thriving black market in foreign exchangeand basic commodities.
The worsening economy could add to pressure on the rulingZANU-PF party to make concessions to the opposition Movementfor Democratic Change, which has refused to recognise Mugabe'soverwhelming victory in a June 27 presidential run-offelection.
MDC leader Morgan Tsvangirai won the first round vote onMarch 29 but failed to get the absolute majority needed toavoid a second ballot. Tsvangirai pulled out of that poll,citing violence by pro-Mugabe militia.
Two weeks ago a German firm, Giesecke and Devrient, stoppeddeliveries of banknote paper to Zimbabwe following pressurefrom the German government amid international criticism ofMugabe's widely condemned re-election. Gono said Zimbabwe hadmade alternative arrangements.
(Reporting by Cris Chinaka; Editing by Ian Jones)
