Zim set to introduce a $50 note as it seeks to double cash in circulation to $3 bln, says Eddie Cross Via Twitter by Happi Zengeni
The $50 notes will be introduced less than a year after the central bank also issued $10 and $20 notes in May. At the time when the notes were introduced, the Black market swiftly responded by depreciating the value of the Zimbabwe dollar against the US dollar.
But since August, the central bank seems to have tamed the black market with the Auction so the Zimbabwe dollar’s value will likely remain stable after the release of the $50 notes.
Some people have questioned the RBZ’s motive behind the move. They suspect that the government wants to print more money in order to pay civil servants their salaries and Covid-19 allowance, which they are now both receiving as Zimbabwe dollars.
Back in May when $10 and $20 notes were issued people expressed concern over the increase in money supply which generally increases inflation, but Eddie Cross stepped in to clarify that the RBZ was “simply increasing cash supply instead of increasing money supply”.
It’s understandable for people to be concerned with the introduction of higher denominated notes given that the wounds of 2008 hyperinflation are still fresh.