BY BUSINESS REPORTER
The Reserve Bank of Zimbabwe (RBZ) has issued a $50 dollar note, to add to the $2, $5, $10 and $20 notes which are already in circulation.
In a statement, RBZ governor John Mangudya said the higher denomination, engraved with the picture of national heroine Mbuya Nehanda, had been issued under Statutory Instrument 196 of 2021.
The $50, almost equal to United States 59 cents, comes into circulation tomorrow, with $360 million to be issued through the normal banking channels.
Introduction into circulation of ZW$50 banknote pic.twitter.com/kJvQbif2ny
— Reserve Bank of Zimbabwe (@ReserveBankZIM) July 6, 2021
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The central bank announced several months ago that it would issue higher denominations, with the market expressing fear the move could result in inflation.
Statutory instrument on the release of a new ZW$50 note has been issued. On the right is a sample of the new note and security features. pic.twitter.com/o2tFiV6mGO
— Ministry of Information, Publicity & Broadcasting (@InfoMinZW) July 6, 2021
“The Reserve Bank of Zimbabwe (the bank) wishes to advise the public that the $50 banknote issued on July 6, 2021 through Statutory Instrument 196 of 2021 will be introduced into circulation on July 7, 2021,” RBZ governor John Mangudya said in a statement.
“The bank shall release $360 million through the normal banking channels and banks are expected to fund their respective accounts held at the Reserve Bank and collect the cash from July 7, 2021.”
Economists have said one of the major concerns of introducing a higher denominated note would be its negative effects on inflation as it would increase money supply.
But Mangudya has, in the past, allayed the fears, saying the central bank would closely monitor how much liquidity would be released alongside the new bank notes.
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