The Washingtonian’s View

Zimbabwe’s national woes increase. The country is dealing with a record 2.2 million percent inflation. To combat the problem, the nation has introduced a new 100-billion-dollar bank note. This is their way of tackling the rampant cash shortages. The central bank in Zimbabwe feels they have no option, but to do this. They also believe that things will get worse before they get better.

The new note is set to go into circulation on Monday. The state media, which is controlled by the government, announced the new note will join over a half dozen new high denomination notes that have been introduced earlier this year.

The government announced a 10-million-dollar note in the beginning of the year. Four months later, in April, the 50-million-dollar note was released. A month later, notes for 100 million and 250 million dollars were issued, swiftly followed by those for five billion, 25 billion and 50 billion.

The former southern African vacation spot has been in a post-election crisis. It has been ravaged by hyperinflation which shot up from 165,000 percent in February to 2.2 million in June.

Independent economists however believe the official inflation figure is grossly understated, estimating it could be running between 10 million and 15 million percent.

Zimbabwe’s chronic economic crisis has left at least 80 percent of the population living below the poverty threshold and mass shortages of basic goods in shops.