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Posted: 7/19/2008 1:08:11 PM EDT
[Last Edit: 7/19/2008 1:09:51 PM EDT by KUpolo]
Inflation at 2.2 million percent!!

www.cnn.com/2008/WORLD/africa/07/19/zimbabwe.banknotes/index.html


ARARE, Zimbabwe (CNN) -- Zimbabwe's troubled central bank introduced $100 billion banknotes Saturday in a desperate bid to ease the recurrent cash shortages plaguing the inflation-ravaged economy.

The bills officially come into circulation Monday, although they were on the foreign currency dealers market Saturday.

As high as they are, though, the bills still aren't enough to buy a loaf of bread. They can buy only four oranges.

The new note is equal to just one U.S. dollar.

Once-prosperous Zimbabwe has seen an unprecedented economic meltdown since it gained independence in 1980, with the official inflation rate now at 2.2 million percent.

Gideon Gono, governor of the Reserve Bank of Zimbabwe, said the new notes are for "the convenience of the banking public and corporate sector" in light of price hikes.

"The RBZ has noted with concern the unjustifiable and incessant general increases in prices of goods and services. It is therefore appealing to the business community to follow ethical business practices as well as take an interest in the plight of the general public," Gono said in a statement dated Friday.

Zimbabwe started issuing large bank notes in December, starting with denominations of $250,000.

In January, the government issued bills in denominations of $1 million, $5 million, and $10 million -- and in May, it issued bills from $25 million and $50 million up to $25 billion and $50 billion.

The new bills are actually bearer checks and have an expiration date of December 31. Zimbabwe has not had formal currency since the introduction of bearer checks as a temporary measure in 2003.

"The RBZ is fighting a losing battle," economist John Robertson said in Harare. "As long as the inflation remains high, cash shortages will persist. There is need to address the inflation by increasing production so that too goods do not [cost] a lot of money."
Link Posted: 7/19/2008 1:09:37 PM EDT
Truly, we have much to learn from Mother Africa
Link Posted: 7/19/2008 1:10:08 PM EDT
Where do I get them? I want a billion dollar bill, or two.
Link Posted: 7/19/2008 1:11:22 PM EDT

Originally Posted By RckClimber:
Where do I get them? I want a billion dollar bill, or two.


1 billion is worth $0.01 US now

It will not be too long before they have to scrap the currency and start using foreign money.
Link Posted: 7/19/2008 1:14:05 PM EDT
Link Posted: 7/19/2008 1:14:11 PM EDT

Originally Posted By KUpolo:

Originally Posted By RckClimber:
Where do I get them? I want a billion dollar bill, or two.


1 billion is worth $0.01 US now

It will not be too long before they have to scrap the currency and start using foreign money.


Isn't that pretty much the collapse of a nation, when they don't have their own monetary system?

I guess Europe has one currency, but some of them are resisting that.

I wouldn't mind having one of the uber-billion bills.
Link Posted: 7/19/2008 1:18:48 PM EDT
[Last Edit: 7/19/2008 1:19:26 PM EDT by KUpolo]

Originally Posted By ziarifleman:

Originally Posted By KUpolo:

Originally Posted By RckClimber:
Where do I get them? I want a billion dollar bill, or two.


1 billion is worth $0.01 US now

It will not be too long before they have to scrap the currency and start using foreign money.


Isn't that pretty much the collapse of a nation, when they don't have their own monetary system?

I guess Europe has one currency, but some of them are resisting that.

I wouldn't mind having one of the uber-billion bills.


Not at all. Basically what happens is the citizens will just start using a stable foreign currency like the euro or dollar because their money is worthless.
Link Posted: 7/19/2008 1:20:18 PM EDT
Stupid hurts.
Link Posted: 7/19/2008 1:37:38 PM EDT

Originally Posted By KUpolo:

Originally Posted By ziarifleman:

Originally Posted By KUpolo:

Originally Posted By RckClimber:
Where do I get them? I want a billion dollar bill, or two.


1 billion is worth $0.01 US now

It will not be too long before they have to scrap the currency and start using foreign money.


Isn't that pretty much the collapse of a nation, when they don't have their own monetary system?

I guess Europe has one currency, but some of them are resisting that.

I wouldn't mind having one of the uber-billion bills.


Not at all. Basically what happens is the citizens will just start using a stable foreign currency like the euro or dollar because their money is worthless.


That's kind of tough when the government makes that illegal, and will seize foreign currency and imprison those who hold it.

I have no doubt that there's a burgeoning black market in Zimbabwe that's dominated by dollars and barter.
Link Posted: 7/19/2008 1:39:05 PM EDT
Link Posted: 7/19/2008 1:44:03 PM EDT
It'd be interesting to find out which currency the black (Can I say that?) market in the former Rhodesia runs on.
Whether it's the dollar or Euro. (Or yuan)
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