"The Reserve Bank of Zimbabwe (RBZ) has barred all retail outlets from selling goods worth more than 100 million Zimbabwe dollars in cash to customers using old and new bearer cheques, as the clampdown against cash holders gathers momentum," The Herald said quoting a statement from the bank.

"Such transactions should now be done through bank transfers and cheques," it said.

On Monday, the central bank slashed three zeroes from its currency to help consumers battling with bundles of money on shopping trips costing them billions and trillions of local dollars.

The central bank also devalued the country's currency by 59.5 percent to 250,000 dollars against the greenback and gave Zimbabweans up to August 21 to hand in their existing bearer cheques for a new series launched on Tuesday.

The daily said the central bank issued the directive as money launderers, selling foreign currency on the black market at 550,000 local dollars to the greenback, had turned to shopping in supermarkets to avoid state investigators probing illegal deals.