Street vendors said visitors had been so intrigued by the Zimbabwe bills that they were now running out of them, two years after a power sharing deal between longtime rule President Robert Mugabe and the former opposition leader, Prime Minister Morgan Tsvangirai, made the old currency redundant. An Australian wanted one to display in his local bar back home. Janice Waas said Westerners were buying the bills for their curiosity value.
Janice's husband Thomas Waas, a physicist and engineer from Germany, said if the population of the world is 7 billion people, every single person could be a given thousands of old Zimbabwe dollars from this single 100 trillion note. "The idea is to have more currency available to the transacting public for convenience purposes and it will not cause inflationary pressures," he said."It's perfect if you like puzzles, calculus and things like Rubik's Cube," she said.
"Two years ago, when I was in the Reserve Bank Monetary Policy Committee, it was resolved that the central bank introduces local currency in denominations of $2, $5, $10, $50 and $100, so the introduction of the $100 note is well-thought. The issue at stake is for the authorities to deal with issues of money supply of which I don't think they will print more money beyond their (quarterly) money growth target," said Mr Chikohora.Įconomist Mr Eddie Cross said the move by the RBZ was well-thought. "We don't expect that the introduction of a $100 note will fuel inflation. Inflation itself, has of late, been caused by the loss of value of the local currency against the US dollar given that most of the transactions in the economy are being done electronically using platforms such as EcoCash, swipe and so forth.
"If we have high denominations, it will improve convenience to the transacting public. Please try again later.Įconomic commentator and former Zimbabwe National Chamber of Commerce president, Mr Trust Chikohora said the introduction of the $100 note was welcome. There was a problem processing your submission. This should be done through adopting a market-based economy where the commodity exchange becomes pivotal in the trading of commodities such as maize through an auction arrangement, said Prof Mugano. He said at the moment, monetary authorities must stabilise the gap between the official exchange rate and the parallel market. Prof Mugano wants the introduction of the $100 note to be the last until the economy goes into single digit inflation. "When that happens, the intention by the authorities becomes null and void," he said. So, as the $100 note is introduced (and) the behaviour out there in the market changes, there is a tendency of raising prices when a new note of higher denomination is introduced. "I would agree with the Reserve Bank Governor when he says this inflation is driven by behavioural changes. While the intention of the monetary authorities will be to bring convenience to the transacting public, Prof Mugano said the intended objective would be rendered useless by counter-productive elements. Presently, the highest denomination is a $50 note, which is in circulation technically alongside $20, $10, $5 and $2, although for all practical purposes the only notes readily available at the moment are the $50 and $20 notes, the three smaller denominations having now moved out of the market place. "The impact of this will be insignificant in that the authorities are not printing more money but replacing the bond notes with the Zimbabwe dollar," he said. So the $100 note will be accommodative in that money should be convenient to the public. "The rationale behind the introduction of the $100 banknote is based on the inflationary pressures which are eroding the value of money. Economic analyst Professor Gift Mugano said the rationale behind introducing a higher denomination banknote was the negative impact of inflation.
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