tuggybear Posted July 19, 2008 Share Posted July 19, 2008 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 Quote Link to comment Share on other sites More sharing options...
1929crash Posted July 19, 2008 Share Posted July 19, 2008 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 . . . Quote Link to comment Share on other sites More sharing options...
BoomBoom Posted July 19, 2008 Share Posted July 19, 2008 Why not just revalue the currency? Quote Link to comment Share on other sites More sharing options...
1929crash Posted July 19, 2008 Share Posted July 19, 2008 Why not just revalue the currency? And call it the Mugabe? 100 Smiths = 1 Mugabe? Quote Link to comment Share on other sites More sharing options...
ChumpusRex Posted July 19, 2008 Share Posted July 19, 2008 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" Quote Link to comment Share on other sites More sharing options...
BoomBoom Posted July 19, 2008 Share Posted July 19, 2008 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. Quote Link to comment Share on other sites More sharing options...
1929crash Posted July 19, 2008 Share Posted July 19, 2008 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. Quote Link to comment Share on other sites More sharing options...
scuuzeme Posted July 19, 2008 Share Posted July 19, 2008 And call it the Mugabe? 100 Smiths = 1 Mugabe? I thought the "Bob" myself. " Lend us a trillion bob for the bus fare wouldya mister? " Quote Link to comment Share on other sites More sharing options...
BoomBoom Posted July 19, 2008 Share Posted July 19, 2008 The winner of the Zimbabwe state lottery recieves a cheque that is half a mile long. Quote Link to comment Share on other sites More sharing options...
Abteilung Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
Quagmire Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted July 20, 2008 Share Posted July 20, 2008 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"? Quote Link to comment Share on other sites More sharing options...
DEATH Posted July 20, 2008 Share Posted July 20, 2008 At least the spammer offering to give me $100bn if I send them £50 first is telling the truth now. Quote Link to comment Share on other sites More sharing options...
Guest happy? Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
Havoc Posted July 20, 2008 Share Posted July 20, 2008 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. 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. Quote Link to comment Share on other sites More sharing options...
gusset Posted July 20, 2008 Share Posted July 20, 2008 Here is the governor of Zimbabwe's reserve bank talking about a proposed revaluation last year, codenamed Sunrise II. Utterly bonkers. Quote Link to comment Share on other sites More sharing options...
R K Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
domo Posted July 20, 2008 Share Posted July 20, 2008 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 .... and they will remove 1-4 zeros, methinks 9 zeros may be more appropriate, y'know. Quote Link to comment Share on other sites More sharing options...
1929crash Posted July 20, 2008 Share Posted July 20, 2008 In the past maybe, Zimbabwe now lives off food aid. How about "backed by violence"? "I promise to butcher the bearer on demand." Quote Link to comment Share on other sites More sharing options...
Its time to buy Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
Flatdog Posted July 20, 2008 Share Posted July 20, 2008 Presuming that Zimbabwe still has a mortgage market I wonder if the 'SVR' would be adjusted on a daily or hourly basis? Quote Link to comment Share on other sites More sharing options...
Guest anorthosite Posted July 20, 2008 Share Posted July 20, 2008 Someone also said that at Pearl Harbor. Quote Link to comment Share on other sites More sharing options...
deadman Posted July 20, 2008 Share Posted July 20, 2008 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. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted July 20, 2008 Share Posted July 20, 2008 I still don't get how Zimbabwe is still functioning, albeit appallingly. Given that their printed money is worthless, what they swapping for their imports, such as oil? Quote Link to comment Share on other sites More sharing options...
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