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BACKGROUND
Zimbabwe: Trillion Dollar Notes Introduced
Alex Bell 16 January 2009
SW Radio Africa (London)
The central bank on Friday introduced new Zimbabwe dollar bank notes into circulation, this time in the trillion dollar range, in the most recent indication that Zimbabwe is a failed state.
The new notes, ranging from a Z$10 trillion note to Z$100 trillion, is the latest effort by the Reserve Bank to 'help' Zimbabweans deal with the country's out-of-control hyperinflation that experts believe has, unofficially, reached at least a billion percent, if not much more. But with the almost total dollarisation of the economy, coupled with the worthless nature of the local dollar, the new notes will likely be worth less than the ink used to print them in the coming weeks.
The Z$100 trillion note is estimated be worth the equivalent of US$30 and will reportedly only buy 6 loaves of bread from those few traders still dealing in local currency. The collapsed economy and continued introduction of ludicrously high denominations of bank notes is the most visible sign of Zimbabwe's economic and humanitarian crises, which have left millions of lives at risk in a country torn apart by hunger and disease.
Zimbabwe: Zimbabwe removes 12 zeros from currency
CNN February 2, 2009
Zimbabwe slashed 12 zeros from its currency as hyperinflation continued to erode its value, the country's central bank announced Monday.
Patrick Chinamasa, Zimbabwe's acting finance minister, arrives last week at Parliament to present the '09 budget.
Patrick Chinamasa, Zimbabwe's acting finance minister, arrives last week at Parliament to present the '09 budget.
"Even in the face of current economic and political challenges confronting the economy, the Zimbabwe dollar ought to and must remain the nation's currency, so as to safeguard our national identity and sovereignty. ... Our national currency is a fundamental economic pillar of our sovereignty," said Gideon Gono, governor of the Reserve Bank of Zimbabwe.
"Accordingly, therefore, this monetary policy statement unveils yet another necessary program of revaluing our local currency, through the removal of 12 zeros with immediate effect."
The move means that 1 trillion in Zimbabwe dollars now will be equivalent to one Zimbabwe dollar.
The old notes -- with the highest being 100 trillion dollars -- not enough to buy a loaf of bread -- will remain valid until June 30, after which they will cease to be legal tender. One U.S. dollar is trading above 300 trillion Zimbabwe dollars.
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