afrol News, 31 July - With effect from Wednesday, the Reserve Bank of Zimbabwe will start issuing the country’s new Z$200,000 dollar note. The launching of the new note is aimed at reducing the high inflation rate.

Officially, the new currency amounts to US $15. And until its launching on 1 August, Z$100,000 is Zimbabwe’s highest bank note.

Last year, the government lopped three zeroes off its currency, but this does not safe Zimbabweans from lining their pockets with huge notes of cash to pay for basic services or transactions. So the new note will reduce that trend.

Despite the high amount, the high inflation rate estimated at 5,000% has already threaten the value of the new note, which cannot even buy a bag of maize, the country’s staple food.

For some years now, Zimbabwe has been reeling with political and economic morass and the matter became so serious that it continues to attract the world’s attention. The country’s leader has been blamed for creating volatile economic and political environments.

President Mugabe says his country’s woes have been artifically created by the west in protest against his government’s controversial land reforms policy. He expresses his government’s defiance against any foreign interference in Zimbabwe’s internal affairs.

The question now is: what can be done to control the soaring cost of living? The ruling ZANU-PF government has been forced to set up a commission for the purpose.

Most people however believe that prices of foods will continue to soar as long as shortages have not been addressed. According to IMF, Zimbabwe’s year-on-year inflation rate might top 100,000% by the year end.

The launching of the new note comes after a government crack down on businesspeople accused of refusing to obey the official price reduction order. This led to the arrest and prosecution of many businesspeople, a scenario that gives way to closure of shops and industries thus leaving local people without food.

By staff writer

© afrol News

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