HARARE, July 30: In a sign of Zimbabwe’s dire financial crisis, its reserve bank announced on Wednesday it was knocking 10 zeros off the country’s hyper-inflated currency — a move that turns 10 billion dollars into one.

Central bank governor Gideon Gono announced he was dropping 10 zeros from the currency, with effect from Friday. That comes a week after he introduced a 100 billion-dollar note which was not enough to buy a loaf of bread.

Gono said the new money would be launched on Friday with 500-dollar bills. He also said he was reintroducing coins.

Gono said the high rate of inflation was hampering the country’s computer systems. Inflation is officially running at 2.2 million per cent in Zimbabwe but independent economists say it’s closer to 12.5 million per cent.

Computers, electronic calculators and automated teller machines at Zimbabwe’s banks cannot handle basic transactions in billions and trillions of dollars.

President Robert Mugabe went on television immediately after Gono’s announcement to warn residents to shun illegal money dealings and profiteering. “Entrepreneurs across the board: Don’t drive us further,” he warned. “If you drive us even more we will impose emergency measures.”—AP