Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Zimbabwe introduces new currency

Zimbabwe, July 30 – Zimbabwe\’s central bank has said it will introduce a new currency on 1 August as part of efforts to fight the effects of hyperinflation.

The bank\’s governor, Gideon Gono, has announced zeros will be lopped off the Zimbabwe dollar, making 10bn dollars one dollar.

Only last week, the government introduced the Z$100bn note.

South Africa\’s Thabo Mbeki is due in Harare after crisis talks between government and opposition were halted.

He will meet President Robert Mugabe, whom the opposition have accused of stealing the election earlier this year.

It emerged that President Mbeki held a meeting in the South African capital, Pretoria, on Tuesday with the opposition MDC\’s Morgan Tsvangirai.

Mbeki, the lead mediator on the Zimbabwe crisis, has said the two sides are determined to reach an agreement within a two-week time-frame at the talks in a secret location near Pretoria.

But opposition sources said the talks have reached deadlock.

After the currency announcement, Mugabe warned the country\’s businessmen in a televised address to stop profiteering or face emergency measures.

Advertisement. Scroll to continue reading.

"The Zimbabwe dollar will be redenominated by a factor of one to 10, which means we are removing 10 zeros from our monetary value. Ten billion dollars today will be reduced to Z$1… effective from 1 August,"  Gono said in a television broadcast.

The high rate constrained the operations of the country\’s computer systems, with computers, calculators and banks\’ cash machines not able to handle basic transactions in billions and trillions of dollars, he added.

The new Z$100bn (under $2, £1) note introduced last week is not enough to buy a loaf of bread.

Inflation is officially running at more than 2,000,000%, but many analysts believe the true inflation figure is at least 9,000,000%.

So far this year, Zimbabwe has been forced to print Z$100m, Z$250m and Z$500m notes in rapid succession, now mostly worthless.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...