Jump to content
House Price Crash Forum
Sign in to follow this  
tuggybear

Zimbabwe Introduces Z$100bn Note

Recommended Posts

Zimbabwe is to introduce a bank-note worth Z$100bn in response to rampant inflation - but the note will barely cover the cost of two loaves of bread.

Some Zimbabweans are already calling for higher denominations in a country where the official annual inflation rate has exceeded 2,200,000%.

Independent economists believe the real rate is many times higher.

Zimbabwe's meltdown has left at least 80% of the population in poverty, facing mass shortages of basic goods.

The country's central bank has introduced several new notes already this year in response to the hyperinflation.

In January, a Z$10 million note was issued, followed by a Z$50 million. By June the denominations had reached tens of billions.

Daily bread

In a notice in the state-controlled Herald newspaper, central bank governor Osborne Gono said the Reserve Bank of Zimbabwe would introduce the new notes - known as special agro-cheques - to help consumers.

"This new $100 billion special agro-cheque will go into circulation on Monday," the notice said.

But Zimbabwe residents say the latest note is already worthless, and does not even cover their daily lunch.

"Nowadays, for my expenses a day, I need about Z$500 billion," one resident said.

"So Z$100 billion can't do anything because for me to go home I need Z$250 billion, so this [note] is worthless."

Zimbabwe was once one of the richest countries in Africa.

But it has descended into economic chaos in recent years, with many international observers blaming the policies of President Robert Mugabe.

Link : http://news.bbc.co.uk/1/hi/world/africa/7515823.stm

Share this post


Link to post
Share on other sites
Zimbabwe is to introduce a bank-note worth Z$100bn in response to rampant inflation - but the note will barely cover the cost of two loaves of bread.

Some Zimbabweans are already calling for higher denominations in a country where the official annual inflation rate has exceeded 2,200,000%.

Independent economists believe the real rate is many times higher.

Zimbabwe's meltdown has left at least 80% of the population in poverty, facing mass shortages of basic goods.

The country's central bank has introduced several new notes already this year in response to the hyperinflation.

In January, a Z$10 million note was issued, followed by a Z$50 million. By June the denominations had reached tens of billions.

Daily bread

In a notice in the state-controlled Herald newspaper, central bank governor Osborne Gono said the Reserve Bank of Zimbabwe would introduce the new notes - known as special agro-cheques - to help consumers.

"This new $100 billion special agro-cheque will go into circulation on Monday," the notice said.

But Zimbabwe residents say the latest note is already worthless, and does not even cover their daily lunch.

"Nowadays, for my expenses a day, I need about Z$500 billion," one resident said.

"So Z$100 billion can't do anything because for me to go home I need Z$250 billion, so this [note] is worthless."

Zimbabwe was once one of the richest countries in Africa.

But it has descended into economic chaos in recent years, with many international observers blaming the policies of President Robert Mugabe.

Link : http://news.bbc.co.uk/1/hi/world/africa/7515823.stm

Where Zimbabwe leads, Britain will follow . . .

Share this post


Link to post
Share on other sites
Why not just revalue the currency?

They've already done that in 2006 - it worked for a couple of months.

The governer of the Reserve Bank of Zimbabwe later mused about this: "I took off 3 zeroes, but the zeroes came back"

Share this post


Link to post
Share on other sites
They've already done that in 2006 - it worked for a couple of months.

The governer of the Reserve Bank of Zimbabwe later mused about this: "I took off 3 zeroes, but the zeroes came back"

But at this point the zeros are pretty meaningless. I mean having currency notes in othe order of billions of monetary units is crazy. Maybe they should move over to using gold and silver coinage.

Share this post


Link to post
Share on other sites
They've already done that in 2006 - it worked for a couple of months.

The governer of the Reserve Bank of Zimbabwe later mused about this: "I took off 3 zeroes, but the zeroes came back"

Someone also said that at Pearl Harbor.

Share this post


Link to post
Share on other sites

Someone is selling these notes on ebay, ironically they are going for reasonable amounts for curiosity value, some of the profits are being donated back to ordinary Zimbabweans apparently.

Share this post


Link to post
Share on other sites

why not attach the currency to comething of real value? I don't know a lot about Zimbabwe, but I've read it can produce incredible amounts of food. Let the people do it.

Share this post


Link to post
Share on other sites
Guest sillybear2
why not attach the currency to comething of real value? I don't know a lot about Zimbabwe, but I've read it can produce incredible amounts of food. Let the people do it.

In the past maybe, Zimbabwe now lives off food aid. How about "backed by violence"?

Share this post


Link to post
Share on other sites
Guest happy?
The winner of the Zimbabwe state lottery recieves a cheque that is half a mile long.

Sadly, you're not far wrong:

....In August 2006, Zimbabwe's central bank issued a one cent note. In May this year, it issued a $50bn note. At the time it was worth about £2; now it is just 17p, and that won't be for long. Meanwhile, an advert in yesterday's Harare Herald newspaper trumpeted that this week's Lotto bonanza is "$1.2 quadrillion" in prizes (£2,100, and not for long either)....

http://www.guardian.co.uk/world/2008/jul/18/zimbabwe

The above article was published Friday - I'm betting a quadrillion dollars is probably worth about £750 by now.

Share this post


Link to post
Share on other sites

Gosh, I can remember only earning Z$2500 a month when I worked there in the early '90s. - and I could actually live off that then.

I still have some of the old $2 and $5 notes but I havent changed them into Sterling because they would be worth less then 1p. :lol:

I have heard stories of people buying 2 rounds of drinks in bars because by the time the finish the first drink the second will have gone up another 50% in 10 minutes.

Share this post


Link to post
Share on other sites
The governer of the Reserve Bank of Zimbabwe later mused about this: "I took off 3 zeroes, but the zeroes came back"

I briefly flirted with the notion that not having a formal economics training put me at a disadvantage to those that do.

Share this post


Link to post
Share on other sites

Im a simple soul, but if they STOPPED PRINTING then the inflation would solve itself.

We should enforce an Ink embargo to help the populace.

Share this post


Link to post
Share on other sites
Here is the governor of Zimbabwe's reserve bank talking about a proposed revaluation last year, codenamed

Sunrise II. Utterly bonkers.

How depressing, its interesting the multiple references too "ARTIFICIAL cash shortages". Also they claim only $50trillion is in circulation :blink: .... and they will remove 1-4 zeros, methinks 9 zeros may be more appropriate, y'know.

Share this post


Link to post
Share on other sites

They have no intention of controlling inflation.

It keeps the majority poor, so they cannot uprise get the current goverment out.

For the people theres little way out - they cant afford weapons, or food just to survive, so organising a revolution is out of the question.

Mugabae has his grip on the country, and I fear for the people for MANY YEARS TO COME.

Share this post


Link to post
Share on other sites

Presuming that Zimbabwe still has a mortgage market I wonder if the 'SVR' would be adjusted on a daily or hourly basis?

Share this post


Link to post
Share on other sites

It reminds me of how I used to talk in monetary terms when I was a kid.

For example, the average house price in Zimbabwe is probably somewhere in the region of......

One hundred thousand million trillion billion gazillion pounds. Give or take a few bazillion.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.