Building societies fail to get delivery of new notes

By Tichaona Sibanda
18 January 2008

Most building societies in the country were unable to dispense the new denomination banknotes after failing to get delivery of the new bearer cheques from the Reserve Bank of Zimbabwe.
The new notes hit the streets on Friday but were only available from banking institutions like Standard Chartered, Stanbic and Barclays.

Our Harare correspondent Simon Muchemwa witnessed many people who failed to withdraw any money, after being told by building society officials that there was no money to give out.
‘Those who have accounts at commercial banks had no problems withdrawing their cash but others who bank with CABS, Beverley and the POSB left the banks frustrated after failing to get any money,’ Muchemwa said.

The central bank introduced the new higher-denomination banknotes saying it was an effort to ease the critical shortage of cash in the country – an impossible task when independent analysts estimate that inflation could be as high as 100 000 percent.

The highest value note that went into circulation is worth Z$10m. Other notes issued are Z$5,000 000 and Z$1,000 000. RBZ governor Gideon Gono described the introduction of the new notes as crucial in eradicating the long queues for cash.

Our correspondent said government’s only response to the crisis has been to print more money - a futile exercise that only adds to the hyperinflation.