After a decade without an official currency, Zimbabwe’s central bank issued a new currency of Zimbabwean dollars. The measure is an attempt by officials towards beginning to alleviate the country’s cash crunch in the midst of an economic crisis, through injecting money into the economy. Zimbabwe has suffered from a financial calamity under nearly forty years of governmental economic mismanagement. Prices of staple foods have risen nearly sevenfold over recent months, and the International Monetary Fund (IMF) estimates that inflation is at 300%, although Zimbabwe has refrained from reporting the official figure.
Since the country scrapped its own currency in 2009, Zimbabweans have relied on a variety of foreign currencies, an electronic currency called the RTGS dollar, and bond notes. The government is hopeful that the newly issued banknotes will ease the cash shortage that has left many people unable to withdraw pay and savings. Some economists claim, however, that the infusion of new cash is insufficient to address the underlying causes of economic difficulties in Zimbabwe, and may even cause further inflation.
