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Zimbabwean Central Bank Issues Z$500 Million Note Worth About US$2

The Reserve Bank of ZImbabwe's introduction on Thursday of a new bank note for Z$500 million dramatically illustrated the impact of hyperinflation which as last officially measured was running at some 165,000% and is probably much higher by now.

The Z$500 million note, worth two U.S. dollars, joined notes for $250 million, Z$100 million and Z$50 million, as the purchasing power of smaller denominations dwindled and the volume of bank notes needed for ordinary transactions swelled.

Economist Nhlanhla Nyathi told reporter Patience Rusere of VOA's Studio 7 for Zimbabwe that that while such mega-notes lighten the currency load for consumers and businesses, they don’t do anything to address underlying economic fundamentals such as hyperinflation, massive state overspending and moribund production.

More reports from VOA's Studio 7 for Zimbabwe...