Zimbabwean tills

Obsolete coins cause chaos at Zimbabwean tills

Facing stratospheric inflation in the millions of percentile, the central bank has cut 10 Zeros from the currency

Zimbabweans hunted out coins squirreled away years agon in jars and cupboards and headed for the shops, where lines built up as overburdened tellers used to counting mounds of hyper-inflated dollar notes instead were juggling silver.

The central bank, overwhelmed by stratospheric inflation in the millions of percentile, this week cut 10 zeros from the currency and reintroduced coins made obsolete in 2002 when they became worthless. A one-doller coin now is worth 10 billian of the old dollars.

On Friday, about 20 one-dollar coins or 200 billion Zimbabwe dollars could buy a loaf of scarce bread if it could be found in a downtown supermarket. That is about (US)$5 at the official rate and $2 at the black market rate that better reflects the value of the courrency.

It has been a chaotic day a teller filling plastic banking bags with coins at a small supermarket at closing time. Customers have been digging out their old coins. Lines built up as staff counted the coins.

It's a bonous for anyone like me who didn't know what to do with coins and didn't throw them away, says businessman, who carried a cookie jar full that bought him a small sachet of powdered milk.

Mr. Chikomba said he received a few new 10 and 20 dollar notes issued by banks. But most purchasers still used coins, old notes or checks. The old currency remains effective until December, being used alongside new bills in the revalued currency rate introuced.

The biggest new bill is $500, equivalent to 5 trillion in the old denominations. Two weeks ago, the bank had introduced a $100 billion dollar note.

Bank executives said many branches still were waiting for deliveries of new currency from the central bank from the first day of issue. In setting prices on its menu, a downtown cafe mistakenly slashed nine zeros from its prices instead of the required 10. Until December, prices must be quoted in both new dollars and old dollars, accordingly to a central bank directive. Everyone is totally confused. May be things will settle down in a few days. Its farcical at the moment, said the cafe manager, who asked not to be identified for fear of repercussions

Inflation, the highest in the world, is offically running at 2.2 million percent in Zimbabwe but independent economists say it is coloser to 12.5 million percent. Analysts say the slashing of the 10 Zeros and the issue of new lower denomination notes failed to address the root causes of inflation, and in real terms zeros will soon return unless inflation is slowed.