Millionaires Without the Price of a Loaf

Zimbabweans, already facing inflation of more than 580%, yesterday began using a new Z$50,000 note - only to discover that it was not quite enough to buy a loaf of bread.

The new top denomination note is worth only about 50 US cents (28p) in a nation where people are used to paying for goods with thick wads of notes, called bricks, and carrying backpacks and suitcases stuffed with currency to do simple grocery shopping.

"People are complaining about this new note. They say the cheapest price of everything will go up to Z$50,000," said Harare factory worker Iddah Mandaza. "We all know this new note is not the solution to our economic problems."

An average Zimbabwean family now needs Z$16.6m ($166) a month to survive and even with a $50,000 note, that adds up to a lot of paper. And the problem is going to get worse as inflation is expected to hit 800% in March, according to the state central bank.

"We are all millionaires now, but we can't afford to feed our families," said Mrs Mandaza.

In six years Zimbabwe's economy has contracted over 40%, as a result largely of President Robert Mugabe's policies, and economists say the decline in Zimbabwe's once healthy economy is unprecedented for a country that is not at war.