New cash in no show on Monday

Zimbabwe’s central bank failed to introduce new bank notes as expected on Monday.

It had announced that it would roll out the two and five Zimbabwe dollar notes and coins, the first real currency notes in 10 years. They were expected to deal with the cash shortage.

There was some confusion however as there was no sign of the promised new cash.

Instead, banks continued to give out temporary bond notes limiting withdrawals to just 50 Zimbabwean dollars equivalent to $4 (£3.10) per customer.

The government is planning on injecting around 1bn Zimbabwean dollars into the economy over the next six months.

They say it will end chronic cash and stem the black market trade in hard currency.

Critics have warned it could fuel inflation, which at 300% is the highest in a decade.

A central bank official told the BBC that some banks had now begun collecting the new cash and could begin dispensing it on Tuesday, 24 hours late.

BBC