The E-Sylum:  Volume 11, Number 1, January 6, 2008, Article 25

ZIMBABWE REVERSES DECISION TO PHASE OUT ZIM$200 BANKNOTE

According to news reports, "Zimbabwe's central bank on Monday
reversed its decision to phase out a ZIM$200 000 banknote and
pumped ZIM$33-trillion into markets to try ease a severe cash
shortage that has left thousands of shoppers stranded.

"Banknotes have recently joined the growing list of items in
short supply, with thousands of desperate consumers besieging
banks in the run-up to the Christmas and New Year holidays.

"Central bank governor Gideon Gono, who said the bulk of
the country's currency was outside the banking system, blames
the banknote shortage on a rampant black market and foreign
currency trade.

"Earlier this month, Gono introduced ZIM$750 000, ZIM$500 000
and ZIM$250 000 notes and announced that the ZIM$200 000 bill
- which he says is mostly used by foreign currency traders -
would be put out of circulation on January 1.

"All banks in Harare's central business district were flooded
with customers hoping to withdraw money ahead of the New Year
holiday on Tuesday.

"Gono said the cash crisis is a sign of an ailing economy,
which critics blame on Mugabe's controversial policies such
as the seizure of white-owned farms to resettle landless blacks."

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  Wayne Homren, Editor

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