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The central bank of Zimbabwe governor has announced new currency reforms that will see the knocking off 10 zeros on all denominations but has not addressed the fundamentals of the hyperinflation affecting the currency.

The new monetary measures will see a 10 billion dollar denomination being re-denominated to $1.

The chain of zeros had seen prices going into quadrillions affecting operations of the country's computer systems and cash registers.

Computers, electronic calculators and automated teller machines at banks have not been able to handle basic transactions in billions and trillions of dollars.

Just last week Gono introduced a new 100 billion-dollar note that is not enough to buy a loaf of bread.

The new measures will be effected on the 1^st of August coupled with an introduction of new notes and the return of old coins which fizzled out of circulation because of the current hyperinflationary environment.

"With effect from the 1^st of August 2008, all monetary valuations have been re-denominated by a factor of 1:10, 000,000,000 which effectively means the removal of ten (10) zeros from all monetary values. What this means is that 10 billion dollars therefore will translate to $1 (one revalued dollar)," Gono said.

Though offering a reprieve to the amount of paper one has to carry around, the new monetary measures have been described as a panacea to symptoms affecting the economy and not a cure to the root problem.

Economist John Robertson said the monetary policy measures have addressed one of more symptoms.

"He has (Gono) addressed one of more important symptoms of our problems which is there is too many zeros in our currency we need to bring this to a more realistic number. It will make it easier to do the arithmetic and to handle the numbers with cash registers," Robertson said.

He however said the monetary policy does not deal with fundamental problems fuelling inflation.

Robertson said: "The monetary policy does not deal with fundamental problems which have been generated by scarcities, loss of production in every industrial sector, loss of skills from the country over the years and the complete drying up of inflows of investment funding."

On government's increment on foreign currency retention by local companies to 45%, Robertson said this will further harm business operations.

"I am afraid that the government's decision to increase the retentions of foreign earnings is going to slow down business even further because it is money that is being extracted from the very people who can earn foreign currency," he said.

He added that businesses are going to earn less money to sustain their operations where most of them are already suffering from severe tax on the ability to function in addition to income tax.

Zimbabwe's economy has been on a free fall, with a record annual inflation rate estimated at more than 2.2 million percent.

The deepening economic woes have been blamed on bad policies and mismanagement by President Robert Mugabe's government.

In return, President Mugabe has blamed the West for the current economic problems saying it is the agenda of the western powers to effect regime change.