Zimbabwe's central bank will introduce a 100 trillion Zimbabwe dollar banknote, worth about $33 on the black market, to try to ease desperate cash shortages, according to the South African state broadcaster. This note now barely buys one loaf of bread.
Prices are doubling every day, with food and fuel nearly impossible to find. Mugabe blames the plight of his people on machinations by the UK and US governments mostly, reports the SA state broadcaster
SABC-TV.
Hyper-inflation has forced the Zimbabwean central bank to continue to release new banknotes which quickly becomes almost worthless. There is an official exchange rate, but most Zimbabweans resort to the informal market for currency transactions. In addition to the Z$100 trillion dollar note, the Reserve Bank of Zimbabwe plans to also launch Z$10 trillion, Z$20 trillion and Z$50 trillion notes.
The economic meltdown started shortly after the Mugabe regime seized its only food-producing commercial farms, which caused the collapse of the flourishing agricultural sector.
And once the malaise set in, the government resorted to printing more and more paper money - which has plunged Zimbabwe into a insane spiral of inflation and cash-shortages. Zimbabweans often line up for hours outside banks to withdraw barrels full of cash which is barely enough to buy a loaf of bread, reports SABC-TV.
