Zimbabwe introduces $50 billion note

This is what happens when you create massive amounts of money to battle economic weakness.-Lou

Zimbabwe introduces $50 billion note

Story Highlights:

Zimbabwe grappling with hyperinflation estimated at 231 million percent
As of Friday, one U.S. dollar was trading at around ZW$25 billion
The country slashed 10 zeros from the amount of its worthless currency in August
RBZ has allowed most goods and services to be charged in foreign currency

HARARE, Zimbabwe (CNN) -- Zimbabwe's central bank will introduce a $50 billion note -- enough to buy just two loaves of bread -- as a way of fighting cash shortages amid spiraling inflation.

The country's acting finance minister, Patrick Chinamasa, made the announcement in a government gazette released Saturday.

Although Chinamasa did not give the date on which the $50 billion and new $20 billion notes would come into circulation, an official at the Reserve Bank of Zimbabwe said the notes would be distributed to all banks by the end of Monday.

Zimbabwe is grappling with hyperinflation now officially estimated at 231 million percent, and its currency is fast losing its value. As of Friday, one U.S. dollar was trading at around ZW$25 billion.

When the government issued a $10 billion note just three weeks ago, it bought 20 loaves of bread. That note now can purchase less than half of one loaf.

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