HARARE (Sapa-AFP) - Zimbabwe's central bank Monday knocked 12 zeros off the local currency -- reducing one trillion dollars to one dollar - and introduced seven new notes as it battles to revive its battered economy.
"The Central Bank unveils yet another programme through the removal of 12 zeros and the introduction of the following new currency denominations with immediate effect," said Reserve Bank Governor Gideon Gono.
The new denominations are one, five, 10, 20, 50, 100 and 500 dollars.
"Yesterday's trillionaires, I am sorry, will not be able to buy their favourite drink today," Gono said as he announced the latest bid to keep pace with mind-boggling hyperinflation.
The highest note previously in circulation was 10 trillion, with the central bank indicating last month that it would introduce a 100 trillion note.
Already at the end of July 2008, the central bank knocked 10 zeros off its currency and urged a six-month freeze on prices and salaries, but the measures had no effect as Zimbabwe's economy plunged deeper into freefall.
Gono predicted that 2009 would mark a turning point with "rapid disinflation" and the easing of chronic food shortages.
"Unspoken voices of our citizens are sending a message that is clear: 'enough is enough'," he said.
Once one of Africa's best-performing economies, Zimbabwe has been in meltdown since the turn of the decade when Mugabe embarked on a controversial land reform programme which saw thousands of white-owned farms seized by the state.
Mugabe often blames Zimbabwe's economic woes on a package of targeted sanctions imposed by the West.
Inflation first passed the 1,000 percent threshold in May 2006 and was last officially recorded at 231 million percent in July 2008.
Gono said that following the currency revaluation, the "starting interbank rates" will mean two revalued Zimbabwe dollars are worth one South African rand while 20 Zimbabwean dollars will get you one US dollar.
On Sunday, one US dollar (0.78 euros) cost as much as four trillion Zimbabwe dollars.
Last week, Zimbabwe lifted restrictions on the use of foreign currency to buy goods and services, but Gono also said that "Zimbabwe dollars continue to be legal tender and all traders should... adopt a dual pricing framework."
The country's protracted political stalemate since disputed elections last March, "has sapped our collective energy, weakened our spirit and demoralised our hearts," Gono added.
Opposition leader Morgan Tsvangirai and President Robert Mugabe are set to form a unity government next week, more than four months after agreeing to share power.
