Hyperinflation forces Zimbabwe to print $200 million notes
HARARE, Zimbabwe (CNN) -- Cash-strapped Zimbabwe revealed plans Saturday to circulate $200 million notes, just days after introducing a $100 million bill, Finance Minister Samuel Mumbengegwi said.
After the $100 million note began circulating on Thursday, the price of a loaf of bread soared from 2 million to 35 million Zimbabwean dollars.
Amid allegations of illegal foreign currency trading, the government also fired top executives at four major banks Thursday, according to The Herald, a state-owned newspaper.
Many anxious residents of the nation's capital, Harare, have been sleeping outside banks, waiting for them to open so they can make withdrawals before the institutions run out of cash.
The Reserve Bank of Zimbabwe had capped maximum daily withdrawals at 500,000 Zimbabwean dollars: about 25 U.S. cents, or about a quarter of Thursday's price of a loaf of bread.
Last week, restrictions on cash withdrawals -- due to severe money shortages -- triggered riots.
Sixteen soldiers now face possible court-martial due to alleged looting and assaults on civilians and police during the unrest, police spokesman Wayne Bvudzijena told The Herald on Saturday.
"We are still investigating the case," he said. "But we expect the soldiers to appear before a court-martial once investigations are completed."
After spending several days waiting in bank lines, soldiers rampaged through downtown Harare, destroying shops and attacking riot police sent to disperse the protesters.
Cash shortages are not the only crisis plaguing
Zimbabwe.
The United Nations has said that more than half of Zimbabwe's population is in dire need of food and clean water.
Acute shortages of essentials such as fuel, electricity, medicines and food are key indicators of a failed
economy, according to economic observers.
"The [Reserve Bank of Zimbabwe] is failing to deliver the demands of market, prices are doubling daily, and that demands more cash," Zimbabwean economist John Robertson said. "The huge price increases are resulting from severe shortages of most goods."
The once-prosperous African nation is facing its worst economic and humanitarian crisis since attaining independence from Great Britain in 1980.
Zimbabwe's official rate of inflation is 231 million percent, the world's highest.
Critics of Zimbabwean President
Robert Mugabe link hyperinflation to his policies on land distribution and unbudgeted payments to war veterans.
Zimbabwe has had no Cabinet since the March presidential election.
Its political troubles have aggravated its humanitarian and economic crisis, including a cholera outbreak that has killed close to 600 people since August.
http://www.cnn.com/2008/WORLD/africa/12/06/zimbabwe.currency/index.html
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{A half a million Zimbabwean dollars equals 25 cents American. This one time British colony known as "Rhodesia" was by in large liberated by Robert Mugabe who can legitimately be called one of "founding fathers of his country". Now he has become perhaps the most hated man in Africa and the "destroyer of his nation". The British Commonwealth can't deal with him. The African Union can't deal with him and neither can we. I'm surprised no one has put a bullet into his head but that is probably due to the savagery of his secret police and his military who kill his enemies faster than he can produce them.
Africa is a Continent crippled by tribalism, corruption and lawlessness. There are horrible struggles going on between the northern Islamics and the black Africans further south. Darfur is a tragedy that won't go away and now the poor, hopeless people of Zimbabwe are dying of Biblical diseases, cholera, starvation, leprosy, even the plague.
The African Union need a large, well equipped standing military that could sweep into these nations and dethroned the dictators and save their people. There is no other way. Africa can only save itself. We can help with training and supplies but the Africans have to do it themselves. Robert Mugabe must go and the Africans must do it.
Don't you think?}
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