Gasoline coupon is latest currency in Zimbabwe

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The move reflected the complete chaos of Zimbabwe's financial system, where prices are openly quoted in the American currency, in Zimbabwe's own new currency that came out Friday, and in its old denominations, which have 10 more zeros than the new bills.

Even coins have returned to circulation after being abandoned in 2002.

Auctioneers Hammer and Tongues announced the first "auction by barter" to be held Friday. Dozens of cars and other goods will be up for bids payable in gas coupons instead of hard currency and the government says the system is legal, the auction house said Wednesday.

"Homegrown solutions for Zimbabweans. Now we are selling in liters (gallons) not in dollars," the statement said.

Bidders must put down a deposit of 1,000 liters (220 gallons) of gas coupons, worth about $1,500 at the current gas price in Zimbabwe, and pay the rest in coupons when they pick up their purchases.

Zimbabweans face acute shortages of local currency. Already gas coupons can be used to pay some household accounts. Many businesses also pay workers part of their earnings in scarce foodstuffs, or demand dollars for purchases, which is illegal.

"Where coupons become a currency it reflects the rapidly falling value of the Zimbabwe dollar. Barter selling provides something that holds its value," said independent Harare economist John Robertson.

Private financial institutions say Zimbabwe's inflation rate was about 12.5 million percent in May and estimate it has likely climbed to 50 million percent this month.

On Aug. 1, the central bank slashed 10 zeros from the plummeting local currency and Reserve Bank Governor Gideon Gono warned companies against doing business in U.S. dollars. He said such transactions were still illegal and should be reported to police.

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