afrol News, 29 September - Zimbabwean central bank has today issued higher denomination banknotes in bid to overcome cash shortage caused by world highest inflation rate that has shown no sign of dwindling, despite this month successful power-sharing deal.

New 10,000 and 20,000-dollar notes have been released to help Zimbabweans deal with crippling hyperinflation, which amounts to an astonishing 11.2 million per cent.

Central bank has issued a slew of new notes since August when it sliced 10 noughts off the local currency.

Cash supply is said to be so tight that only Z$20,000 (US$20) can be withdrawn a day. This has led to large queues outside banks with people hoping to be among first to be served before cash runs out.

Confederation of Zimbabwe Industries (CZI), country's main industrial body, has said many traders had lost confidence in local currency and were charging in foreign currency for goods and services.

In addition to facing chronic shortages of food, foreign currency and fuel, Zimbabweans have been dealing with a shortage of local currency.

Agreement signed earlier this month between president Robert Mugabe and opposition Movement for Democratic Change (MDC) leader Morgan Tsvangirai has brought hope of political stability that could reverse once prosperous Southern African nation's deep economic slide.

Mr Mugabe returns to Zimbabwe today after attending United Nations general assembly meeting in New York last week.

Both ruling ZANU-PF and MDC are yet to agree on which party should control key ministries, such as finance, home affairs and information.

Analysts, however, have said moves are unlikely to reverse country's economic slide unless accompanied by a resolution of impasse over naming of a new cabinet.

Now unemployment in country is out of control and it is estimated that at least 80% of population lives below poverty line.

By staff writer

© afrol News

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