Zimbabwean Dollar - Banknotes, Traveller's Cheques, and Bearer Cheques

Banknotes, Traveller's Cheques, and Bearer Cheques

The banknotes of the Zimbabwean dollar were issued by the Reserve Bank of Zimbabwe from 1980 to 2009. Up to 2003 regular banknotes were issued but as hyperinflation developed from 2003, the Reserve Bank issued short-lived emergency travelers cheques, which were then quickly superseded by time-limited Bearer Cheques, in denominations ranging from $5 000 to $20 000 in 2003, then up to $100 000 dollars by early-2006.

On 1 August 2006, new Bearer cheques with thirteen denominations ranging from 1¢ to $100 000 were issued following the first redenomination of the dollar, superseding the regular banknotes by 21 August 2006 and until August 2008. Bearer cheques of 5,000 dollars (dated 1 February 2007) and 50,000 (dated 1 March 2007) were issued in March 2007, followed by cheques of 200,000 (dated 1 August 2007) in August 2007. Subsequently, Gideon Gono of the RBZ announced on 19 December 2007 that new bearer cheques (Z$250,000; Z$500,000; and Z$750,000) had been produced and would be released on 20 December. Additionally, the current high value bearer cheques (Z$200,000) would be demonetised as of 1 January 2008. However, due to ongoing problems, plans to demonetise this note were put on hold at the end of December.

Since the Zimbabwean dollar was revalued in August 2006, there were repeated discussions and proposals regarding a further revaluation. As early as the beginning of 2007 it appeared that a revaluation was planned with new banknote designs being commissioned. New plans were announced in October 2007 They were initially postponed until 2008 before, in November 2007, the revaluation was described as "imminent" and would remove as many as four zeros from the currency and would be called Sunrise 2. However, on 18 December 2007, it was reported that a further printing of the current Z$200,000 bearer cheques had been produced, seemingly instead of revaluing. Further new issues of bearer cheques have since taken place.

At a press conference on 16 January 2008, reserve bank Governor Gono stated that "With effect from Friday (January 18), the Reserve Bank of Zimbabwe is releasing the following bearer cheques into circulation: one million dollars (officially worth about US$33/22 euros but worth about 50c at the parallel rate), five million dollars and 10 million dollars." He continued, "...daily cash withdrawals have been increased from the current Z$50 million to Z$500 million per individual." Less than a month after announcing a similar move, Gono said the new notes would provide much needed relief to consumers who often have to go shopping with sacks of cash.

The Zim Independent and Zim Online reported on 4 April 2008 that 25 and 50 million dollar bearer cheques were issued on 4 April. The RBZ also increased the maximum withdrawal limit for individuals to $5 billion a day. On 6 May 100 million dollar and 250 million dollar bearer cheques were issued and the official exchange rate was floated to counter black market speculation. 10 days later, the RBZ announced that 500 million dollar bearer cheques and special agro cheques in the amounts of 5, 25, and 50 billion dollars would be issued were to be issued on 20 May.

On 14 July 2008 Giesecke & Devrient ceased supplying bank note paper to Fidelity Printers & Refiners, the Zimbabwean government-owned company that printed Zimbabwean currency. Virtually incessant use of the currency-printing presses had caused many of the machines to break down, and repair parts were no longer being shipped to Zimbabwe to repair the machines. The Reserve Bank issued the $100 billion Agro Cheque on 21 July, which were printed prior to the suspension.

On 30 July 2008 the RBZ announced a new currency, effective 1 August 2008, removing 10 zeros from the monetary value, by "a factor of 1 to 10". Banknotes in the denominations of $1, $5, $10, $20, $100 and $500 were introduced and replaced bearer cheques and agro cheques by 31 December 2008. However, the familiar cycle of printing ever higher denomination notes to keep up with inflation continued despite redenomination. A $1,000 banknote was introduced by the RBZ on 19 September 2008, and ten days later, as the unofficial exchange rate surpassed 270,000 ZWD to the US dollar, it issued new notes in the denominations of $10,000 and $20,000. A $50,000 banknote was released on 13 October 2008, followed by $100,000, $500,000, and $1,000,000 denominations announced on 3 November. The daily cash withdrawal limit was raised for individuals to Z$500,000 from Z$50,000 and for select companies it went up to $1 million. Banknotes valued at $10 million, $50 million and $100 million were issued as the withdrawal limit was increased to $100 million per week on 4 December 2008. Scarcely four days later, on 8 December, the RBZ issued a $200 million banknote, and introduced a $500 million note on 12 December, worth approximately US$8 at the time. In little over half a year, the billion denomination returned, with the RBZ issuing banknotes of $1 billion, $5 billion, and $10 billion on 19 December.

Amid the continuing hyperinflation that rendered the currency virtually worthless, spurring the increasing dollarisation of the economy, the RBZ issued another set of new notes in denominations of $20 billion and $50 billion to be released 12 January. Stepping up another order of magnitude, the Reserve Bank introduced trillion-denominated notes for the first time, unveiling banknotes valued at $10 trillion, $20 trillion, $50 trillion, and $100 trillion on 16 January, which were supposed to help citizens still in formal employment to withdraw a full month's worth of salary by showing a corresponding payslip. As even these notes became increasingly worthless, a media campaign was launched in South Africa using the notes as printing paper.

On 2 February 2009 the dollar was revalued once more, this time in the ratio of 1:1012, and new banknotes of the fourth dollar, with seven denominations from $1 to $500, were issued. These banknotes circulated alongside the third dollar until the abandonment of the dollar on 12 April 2009.