Zimbabwe to issue $200,000 note
The troubled Zimbabwean economy is preparing to launch a $200,000 note into general circulation, reflecting a new low in the troubled south African nation.
The noted to be issued by the Reserve Bank of Zimbabwe is designed to help tackle inflation, yet at current rates it is only sufficient to buy a 1kg bag of sugar.
Inflation in Zimbabwe stands officially at 4,500% annually, making it the highest rate of inflation anywhere in the world, and crippling its once satisfactory economy.
The Zimbabwe economy has been in crisis over the last few years, with prices multiplying 50 times year on year, particularly for food and energy products.
Food shortages and energy outages are plaguing the economy, and with constant inflation, the currency has reached an all time low against foreign exchange rate.
Yet Zimbabwe is becoming increasingly dependent on foreign imports in order to feed its people, and provide vital raw materials for the country to function.
President Mugabe blames worldwide hostility, particularly from the UK towards Zimbabwe for the plight of the economy, suggesting that sanctions and international pressures have prevented his economy from growing and developing.
However, international critics are blaming some of Mugabe’s more controversial policies for bogging down the economy crippled by inflation, and worsening the living standards of ordinary Zimbabwean people.
Neighbouring South Africa is continuing to receive immigrants from Zimbabwe, as they flee from the poverty and hardship in their droves.
Some reports suggest as many as 300 Zimbabweans cross the border into South Africa everyday, with the effects of an economy in deep recession taking their toll.
With unemployment soaring to 80%, and such rampant inflation, many Zimbabwean people are struggling in what is truly an economic crisis.
Prices are expected to be 1,000 times their 2006 value by the end of this year, according to a report issued by the International Monetary Fund.
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