18 January 2009

Where everyone is a trillionaire!

That money can’t by you everything is an eternal Truth. However it is not a good situation when you money can’t buy you anything....as is the case in Zimbabwe.

According to the BBC on Friday Zimbabwe is introducing a Z$100 trillion note. This will be worth initially £30 (but this is likely to reduce fast) 10, 20 and 50 trillion dollar notes are also being are also being released to help Zimbabweans cope with hyperinflation.

The latest annual figure for inflation, estimated in July last year, was 231m% - the world's highest. "In a move meant to ensure that the public has access to their money from banks, the Reserve Bank of Zimbabwe has introduced a new family of banknotes which will gradually come into circulation, starting with the Z$10 trillion," Zimbabwe's state-run Herald newspaper quotes a bank statement as saying.

But previous issues of new banknotes - and the dropping of several zeros from the currency - have done little to help Zimbabweans cope with inflation. On Tuesday, a 50bn Zimbabwean dollar note was issued, less than a month after a Z$500m bill was released.

Prices can double every day, and food and fuel - for those without US dollars - are in short supply. Some shops are licensed to sells goods in foreign currency but everyone from vegetable sellers to mobile phone service providers peg their prices to the US dollar. Most groceries are brought in by Zimbabweans from neighbouring South Africa, Botswana or Zambia, further driving up prices.

MOAB - The Mother of all bank notes

If there is one crumb of comfort to be derived it’s that Zimbabwe, while in an utterly disastrous state, has not quite gotten to the level of hyperinflation that Hungary saw post WWII. For now the highest banknote will be for:

100 000 000 000 000 Z$

The highest denomination banknote issued in Hungary was for:

100 000 000 000 000 000 000 Pengos

The way Zimbabwe is going it wont be long before notes of these size are issued....


James Higham said...

The Russians divided their money by 1000 and redesignated it. Maybe the Zimbabweans can divide by one billion.

Kay Dennison said...

This is so very very sad!

jams o donnell said...

It looks like the inflaton would wipe that move out pretty quickly James

An utter tragedy Kay