Saturday, December 13, 2008

RICH YUNG REPORT: Zimbabwe unveils $500-million note

Zimbabwe's central bank is introducing a $500 million note - the highest current denomination - as the once-prosperous southern African nation battles against spiraling hyperinflation.

The Reserve Bank of Zimbabwe last week introduced a new set of denominations, including a $100 million note, but that has not helped to clear long lines for cash at banks. Some people sleep outside banks after failing to get cash.

The $500 million note is worth about 8 U.S. dollars and enough to buy just eight loaves of bread. but prices change on an almost daily basis as businesses now peg their prices against the U.S. dollar.

Zimbabwe has had higher denominations than the $500 million note in the past. But over the past two years, the country has slashed zeros from the amount of its worthless currency -- the latest being 10 zeros in August. Source : CNN / Photo: Reuters