Zimbabwe’s new banknote is as a result of the currency shortage in the country.
The new Zimbabwe 2 and 5 dollar notes will reduce the cash shortage in the country but the limitation as regards to its withdrawal is raising worrying concern among Zimbabweans. The bank insisted that withdrawal of this notes will be restricted to $20 per week.
The central bank failed to circulate the new banknotes by the close of business on Monday as agreed but it was later released on Tuesday. The Government hopes the new notes will help reduce the cash crunch, bring down inflation and speed up the restoration of the long-neglected domestic currency.
Among the many reasons for the introduction the new note is the government’s plan to reduce black market traders, but these traders have taken advantage of the shortage of cash to sell the banknotes.
A professor of business studies at the University of Zimbabwe criticized the introduction of the new notes saying it will only increase the black market sells.
“What it means is that we will probably have more cash around to feed the black market for currency,” he said.
After the hyperinflation, Zimbabweans has resulted to saving their money at home to avoid losing their savings and pension like they recently experienced.