The central bank has issued a 500m Zimbabwe dollar banknote, worth US$2, to try to ease cash shortages amid the world's highest rate of inflation.

The previous highest denomination note was for Z$250m, issued 10 days ago.

The annual inflation rate is 165,000% and one economist said prices now double every week.

The move comes as Zimbabwe waits for a date to be announced for a run-off in the presidential election between Robert Mugabe and Morgan Tsvangirai.

Mr Tsvangirai's opposition Zimbabwe to face presidential run-off vote ...
Zimbabwe to verify presidential votes ... Movement for Democratic Change (MDC) has condemned the government's move to delay the election, possibly until July.

"It is part of a programme to give Mugabe and [ruling party] Zanu-PF time to torment and continue a campaign of violence on the MDC," opposition spokesman Nelson Chamisa told Reuters news agency.

'Survive'

Amid the economic crisis, Mr Tsvangirai gained more votes than President Mugabe but did not pass the 50% threshold to be elected, according to the official results.

However, Mr Tsvangirai says he was cheated of victory.

"Prices are now doubling every week instead of every month and it is hard to see how we can survive to the end of June or how an election will be feasible at all if things continue to deteriorate at this pace," said Harare economist John Robertson, according to the AP news agency.

This is the fourth set of new banknotes to be introduced this year.

At independence in 1980, one Zimbabwe dollar was worth more than US$1.

Just one in five of the adult population is believed to have a formal job and some three million people have left the country for a new life in South Africa.

The economy has been in trouble for several years, with supplies of basic foodstuffs, cooking oil and petrol all running low.

The run-off was due to be held by 23 May - 21 days after the results of the first round were announced - but the government has issued an emergency law to give it 90 days to organise the new poll.

The Electoral Commission said it was not possible to hold the run-off so quickly.

Joint investigation

But the MDC says about 30 of its activists have been killed in a campaign of violence around the country, aimed at securing victory for Mr Mugabe.

Meanwhile the justice minister has proposed establishing cross-party teams to probe acts of political violence.

"Whenever there is a claim of an act of politically motivated violence committed, it should be very good that we form joint teams made up of the Zanu-PF and MDC so that we can establish the veracity of these claims," Patrick Chinamasa told state television.

The MDC had threatened to boycott the second round of voting after accusing Zanu-PF of trying to rig it but over the weekend Mr Tsvangirai said he would take part.

He has been in neighbouring countries since the first round because of alleged threats to his life.

Bu the MDC says that Mr Tsvangirai will return to address a rally in Bulawayo on Sunday.

(BBC)

<< Back