Z$100B Note
This is what focusing on Core inflation gets you!
Zimbabwe's $100bn note:
"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."
Here's the most recent currency addition, the Z$10,000,000 note:
The tough thing about the Z$100B Note is getting a cabbie to break one. They rarely have change for anything larger than a Z$50,000,000 note !
>
Source:
Zimbabwe introduces Z$100bn note
21:54 GMT, Saturday, 19 July 2008 22:54 UK
http://news.bbc.co.uk/2/hi/africa/7515823.stm
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Sunday, July 20, 2008 | 07:05 AM | Permalink
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Comments
Yes, the crack about Core Inflation is sarcasm . . .
Posted by: Barry | Jul 20, 2008 7:08:09 AM
I wonder at what point they'll devolve back into a barter or in-kind economy--or has most of them already?
Posted by: Mr. Flibble | Jul 20, 2008 8:21:29 AM
Robert Mugabe and his fellow thugs have transformed that country from the breadbasket of southern Africa to a nation fighting for its very survival. Nothing will improve there until he has the heart attack he so richly deserves.
Posted by: bluestatedon | Jul 20, 2008 9:01:48 AM
Hmmmm.
Even if Mugabe dies it won't change a thing.
The problem isn't just corruption, theft, murder and intimidation. It's inter-tribal politics. One tribe is on top, the other tribe isn't.
Throughout Africa nation-states were created that ignored tribal territories or allowed one tribe to gain power during the colonial/post-colonial period. The tribe in power then used that government power to destroy all competing tribes.
Africa used to have over 500 separate tribes. Now who knows how many are left.
Posted by: memomachine | Jul 20, 2008 10:38:31 AM
Back in Apr 2002 I went to Zim. At that time the offical exchange rate was $1US = $57 Zim. We opted to exchange our US $ on the black market and got somewhere in the range of $300-$320 Zim for each $1 US and many vendors only wanted foreign currencies, rands, pounds or dollars. At some point down the road it makes me wonder if the US won't be faced with a similar situation.
Posted by: Paula | Jul 20, 2008 10:42:44 AM
The Z$ 100b note is actually an "agro cheque" that will become invalid by the end of the year.
http://www.rbz.co.zw/pdfs/special_agro.pdf
Issuing a money surrogate with limited validity is a desperate attempt to lure farmers into selling their products to normal people. Since the actual money has lost any value, there is no incentive to sell. So, to keep any kind of exchange happening, the Central bank tries to produce money that has to return to the bank by December 31st.
Guess what, it is not working.
Posted by: Gregor Neumann | Jul 20, 2008 12:27:17 PM
isn't that only 4 bucks?
the exchange rate is something like $27 billion = 1 USD.
http://www.rbz.co.zw/
Posted by: m3 | Jul 20, 2008 1:17:48 PM
I would expect that at some point no business in zimbabwe will be accepting the zimbabwean dollar. I wonder what will happen to the ruling tribe when they can no longer give money to their friends.
Posted by: Jurgen | Jul 20, 2008 1:42:10 PM
Looks like you can buy a $100B note on eBay for 73.94 USD.
Posted by: MAS (Seattle) | Jul 20, 2008 2:54:48 PM
Bad link above. That was to the $50B note. Here is the link to the $100B note.
Posted by: MAS (Seattle) | Jul 20, 2008 3:00:07 PM
If you squint really hard, you can see below the "TEN MILLION DOLLARS" an inscription "... on or before ... June 2008" (partially obscured by a finger). Further down, "January 2008" (the issue date of the note).
It's money with an expiration date.
This reminds me of a picture from Weimar Germany showing a woman stuffing money into a furnace. Supposedly coal was too expensive, so people went "direct" and burned money.
Posted by: cm | Jul 20, 2008 3:48:31 PM
I bought BP some prime real estate with ZMD.
no need to thank me, really.....
http://zimbabwe.arrove.com/
Posted by: ramstone | Jul 20, 2008 3:59:40 PM
http://effectivedemand.blogspot.com/2008/07/rookies.html
A friend brought back a 50 mil note after he visited. I love money with an expiration date.
Posted by: Effective Demand | Jul 20, 2008 11:39:12 PM
