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.