wheelbarrow economics

Zimbabwe: Can the central bank hold rate as inflation soars?

By Farai Shawn Matiashe

Posted on January 25, 2021 08:35

Zimbabwe Cash Crunch
A vendor transacts on his mobile phone while selling cash in Harare Zimbabwe. (AP Photo/Tsvangirayi Mukwazhi)

It is economic déjà vu for Zimbabwe as the central bank battles spiralling inflation. The Reserve Bank of Zimbabwe is attempting to introduce ever-higher denomination notes; but inflation still approaches 400%.

Faced with a three figure annual inflation rate, Zimbabwe’s central bank has announced that it is planning to introduce higher denomination banknotes for the convenience of the public.

The higher denomination banknote, which will come in the form of 50 Zimbabwean dollars (Z$), will not be adequate to buy even a loaf of bread.