Informal traders, kombi, and tuck shop operators in Harare are now rejecting the ZW$5 bank note, condemning it as worthless.
However, supermarkets are still accepting the note.
According to recent statistics, the annual inflation rate in January 2021, as measured by the all-items Consumer Price Index, stood at 362.63%, up from 348.59% in December.
Meanwhile, the government recently announced the introduction of ZW$50 note as the local currency loses its buying power.
According to the authorities, the introduction of this higher denomination banknote is to help the transacting public.
Zimbabwe has $2, $5, $10 and $20 notes in circulation.
Transacting using these notes has become cumbersome, with huge wads of cash now required to complete small transactions due to inflation.
Cash shortages have triggered queues at banks and an illegal market where premiums are charged to convert electronic money into cash.
And the government has insisted that it won’t introduce higher denomination above zw$50 as of now, and that it won’t print more than is necessary.
Increasing money supply in the market causes inflation, and the government has been saying it is aware of this problem, and as such, will not print more.
-Zwnews
