Zimbabweans rush to hand in expiring bank notes
Tuesday, 1 January 2008
HARARE, Dec 31 (AFP): Zimbabweans thronged banking halls today to beat a deadline to swap 200,000-dollar bills which become worthless when businesses close for the day.
The reserve bank of Zimbabwe phased out the 200,000 zimdollar (about eight US dollars) bank notes in a bid to snuff out a burgeoning currency parallel market and tackle cash shortages which saw many going to the Christmas holiday without withdrawing their salaries.
Depositors who had formed queues while waiting for banks on Samora Machel Avenue in central Harare to open, handed in small satchels of cash or wads of the expiring bearer cheques.
"It's so frustrating because I was given these old banknotes when I made a withdrawal Saturday and I am back here to deposit almost all of the money since many people are refusing to accept it," said Douglas Chimwasa, a Harare resident.
"You can imagine how much time I lost in the queue waiting to withdraw this money and now I will waste at least another hour returning it."
Bearer cheques, essentially money printed on ordinary paper, were introduced in 2003 as a stop-gap measure to ease currency shortages caused by skyrocketing inflation. They expire after one year.
Zimbabwe has been experiencing fresh cash shortages since November blamed by central bank chief Gideon Gono on "cash barons and baronesses" hoarding cash and exchanging it for scarce foreign currency, outside the banking system.
The central bank ordered banks to extend work hours over the past two weekends to accept the 200,000 dollar bills and dispense cash.
The bank also introduced new 250,000, 500,000 and 750,000 zimdollar notes two weeks ago in a bid to tackle Zimbabwe's cash shortages.
The reserve bank of Zimbabwe phased out the 200,000 zimdollar (about eight US dollars) bank notes in a bid to snuff out a burgeoning currency parallel market and tackle cash shortages which saw many going to the Christmas holiday without withdrawing their salaries.
Depositors who had formed queues while waiting for banks on Samora Machel Avenue in central Harare to open, handed in small satchels of cash or wads of the expiring bearer cheques.
"It's so frustrating because I was given these old banknotes when I made a withdrawal Saturday and I am back here to deposit almost all of the money since many people are refusing to accept it," said Douglas Chimwasa, a Harare resident.
"You can imagine how much time I lost in the queue waiting to withdraw this money and now I will waste at least another hour returning it."
Bearer cheques, essentially money printed on ordinary paper, were introduced in 2003 as a stop-gap measure to ease currency shortages caused by skyrocketing inflation. They expire after one year.
Zimbabwe has been experiencing fresh cash shortages since November blamed by central bank chief Gideon Gono on "cash barons and baronesses" hoarding cash and exchanging it for scarce foreign currency, outside the banking system.
The central bank ordered banks to extend work hours over the past two weekends to accept the 200,000 dollar bills and dispense cash.
The bank also introduced new 250,000, 500,000 and 750,000 zimdollar notes two weeks ago in a bid to tackle Zimbabwe's cash shortages.