History
The first banknotes of Zimbabwe were issued by the Reserve Bank of Zimbabwe (formerly Reserve Bank of Rhodesia) for the first dollar (ZWD) in 1980 to coincide with the independence of Zimbabwe. These notes replaced the circulating banknotes of the Rhodesian Dollar at par. The first series of banknotes ranged from $2 to $20, and were signed by D. Crough, the last Governor of the Reserve Bank of Rhodesia. From 1994 to 1997 the Reserve Bank issued a new series of notes ranging from $2 to $100, although the $2 banknote was withdrawn and replaced by a coin in 1997. As rising inflation started to affect the purchasing power of the Zimbabwean Dollar, the $500 and $1 000 banknotes were issued from 2001 to 2005 with enhanced anti-counterfeiting measures.
The RBZ also issued special traveller's cheques in 2003, with six denominations ranging from $1 000 to $100 000. These were short-lived due to unpopularity with the general public: identification was required both during issue and encashment of such cheques, which could only be used once by the bearer. As usual, banks levied a commission fee on all of the cheques.
On 15 September 2003, the RBZ and Standard Chartered issued special Bearer cheques with denominations ranging from $5 000 to $20 000. These, and subsequent issues of the first and second dollars were time limited and lacked sophisticated anti-counterfeiting measures which were heavily used in many modern banknotes such as those of the Swiss Franc. In the first half of 2006 new denominations of $50 000 and $100 000 were issued, with the $1 million denomination being planned for September 2006; it was subsequently never issued.
The time limits were either ignored or extended by multiple decrees, meaning that all notes of these issues remained legal tender in practice until 21 August 2006.
On 1 August 2006 the banknotes of the second dollar (ZWN), with less elaborate designs, replaced those of the first dollar at the ratio of 1 000 to 1. The redenomination (codenamed Operation Sunrise) was heavily publicised under the banner Zero to Hero, but was also rapid and disorganised which resulted in many people being unable to convert their old Bearer cheques to new issues before the lapse date, The Reserve Bank Governor Dr. Gideon Gono said that "10 trillion (first dollars) were still out there and it had become manure".
Further denominations ranging from $5 000 to $500 million were issued in the period between August 2006 and May 2008 as cent cheques quickly became outmoded. In the second quarter of 2008, special Agro cheques (Agricultural Cheques) were issued in denominations ranging from $5 billion to $100 billion as the currency exchange rate was floated. Since the functions were similar to Bearer cheques, it was in regular use as prices continue to rise. These cheques also carried time limits and limited security features. In the final months of the second dollar, the $200 000 cheque was the lowest legal tender denomination by decree, despite having its expiry date extended twice. The $100 000 000 Bearer Cheque would have been the lowest legal tender denomination in circulation had the expiry dates of currency cheques been enforced without extension, with the $100 billion Agro Cheque being the highest whether or not the $200 000 note was legal tender.
Munich-based security printers Giesecke & Devrient ceased providing banknote paper to the Reserve Bank on 1 July 2008 in response to an official request from the German government and widespread calls for sanctions; The Jura JSP software end-user licence, issued to the state-owned Fidelity Printers & Refiners was also terminated on 24 July 2008 for similar reasons although the official press statement quoted that it was de facto impossible to prevent the printers from using the software.
On 1 August 2008 the banknotes of the third dollar (ZWR), which were printed for the abandoned second phase of the 2006 redenomination, replaced the cheques of the second dollar at the ratio of 10 billion (1010) to 1. The Bearer and Agro cheques of the second dollar were phased out along with the smaller denominations of the third dollar on 1 January 2009. Despite the reform the Reserve Bank issued several high-value denominations up to $100 trillion ($1014) in the period between September 2008 to January 2009, which merely kept in similar pace with the cash rate instead of the black market rates.
On 2 February 2009, banknotes of the fourth dollar (ZWL) were introduced to replace those of the third dollar at the ratio of one trillion (1012) to 1. It was originally envisaged that banknotes of the third dollar would remain legal tender until 30 June 2009 but all banknotes were withdrawn from circulation following the suspension of the Zimbabwe dollar on 12 April 2009.
Read more about this topic: Banknotes Of Zimbabwe
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