Zimbabwe Discontinues Currency, Ending Era of Bags of 100 Trillion Dollar Notes

[jimmy olsen]

It's the end of an era.

http://www.slate.com/blogs/the_slatest/2015/06/11/_zimbabwe_formally_ends_local_dollar_currency.html

Zimbabwe Discontinues Its Currency, Ending Era of Bags of 100 Trillion Dollar Notes

By Elliot Hannon

After a brutal decade-plus, the Zimbabwean dollar is being put to rest. The country's central bank on Thursday announced as of Monday, June 15th the country will be dropping the local currency, which through severe economic mismanagement under President Robert Mugabe had not only become unusable, but a global punch line.

The exchange program set up by the central bank for holders of the local currency shows how far the beleaguered Zim dollar has fallen. For anything up to 175 quadrillion Zimbabwean dollars the bank will offer $5 in return. After that $1 will be paid for every 35 quadrillion Zimbabwean dollars. Bills printed before 2009 are slightly more valuable and can be exchanged at a rate of $1 to 250 trillion Zimbabwe dollars.

The spiraling hyperinflation of the 2000's pushed the country to effectively abandon the local currency in 2009 for state business. Harare began using a basket of currencies, including the U.S. dollar and the South African rand, to curb inflation and restore faith in the banking system. The recent move by the government will bring day-to-day monetary transactions into the same multi-currency system. At its lowest point in 2009, hyperinflation had so decimated the currency that the largest denomination note was a whopping $100 trillion. It was not enough for bus fare at the time. Inflation during that period topped out at 500 billion percent. "At the height of Zimbabwe's economic crisis in 2008, Zimbabweans had to carry plastic bags bulging with bank notes to buy basic goods like bread and milk," Reuters notes.

[Monoriu]

I suddenly think that some museum or rich collector in the world should have at least two copies of every banknote ever published. 

[Duque de Bragança]

Did they beat the post WWII Hungarian record of hyperflation? Can't be sure with different scales used by Anglo-Saxons.

[Syt]

I like the 80s hair metal font for the spelled out amount.

[garbon]

I suddenly think that some museum or rich collector in the world should have at least two copies of every banknote ever published. 

Well you wouldn't need to be a rich collector to acquire these notes...

[Monoriu]

I suddenly think that some museum or rich collector in the world should have at least two copies of every banknote ever published. 

Well you wouldn't need to be a rich collector to acquire these notes...

The actual value is low, but the logistics of getting one isn't that easy. 

[Caliga]

http://www.ebay.com/itm/Zimbabwe-100-Trillion-Dollars-2008-AA-P-91-Uncirculated-50-100-Series-/290702453172?pt=LH_DefaultDomain_0&hash=item43af3769b4

[Monoriu]

I will not buy it

[Admiral Yi]

Did they beat the post WWII Hungarian record of hyperflation? Can't be sure with different scales used by Anglo-Saxons.

AFAIK Hungary never came remotely close to 5 billion % inflation in single year.  More like 1,000%.

[Zanza]

Did they beat the post WWII Hungarian record of hyperflation? Can't be sure with different scales used by Anglo-Saxons.

AFAIK Hungary never came remotely close to 5 billion % inflation in single year.  More like 1,000%.

Hungary went from 5.9x10^10 to the dollar in April to 4.6x10^29 in July. That's easily faster than Zimbabwe. That's like the Big Bang compared to Zimbabwe's glacial pace. 

From Wiki: Peak Month and Rate of Inflation: Jul. 1946, 41.9 quadrillion percent

[KRonn]

Now why hasn't the US Treasury thought of this!! Could pay off the debt in days!     Though I'm betting the idea has crossed the minds of some and I think I heard of someone half-hardheartedly proposing 1trillion dollar bills.

[Valmy]

Now why hasn't the US Treasury thought of this!! Could pay off the debt in days!

What could go wrong?

[Admiral Yi]

Hungary went from 5.9x10^10 to the dollar in April to 4.6x10^29 in July. That's easily faster than Zimbabwe. That's like the Big Bang compared to Zimbabwe's glacial pace. 

From Wiki: Peak Month and Rate of Inflation: Jul. 1946, 41.9 quadrillion percent

K

[KRonn]

Now why hasn't the US Treasury thought of this!! Could pay off the debt in days!

What could go wrong?

 

[DGuller]

Did they beat the post WWII Hungarian record of hyperflation? Can't be sure with different scales used by Anglo-Saxons.

AFAIK Hungary never came remotely close to 5 billion % inflation in single year.  More like 1,000%.

Hungary went from 5.9x10^10 to the dollar in April to 4.6x10^29 in July. That's easily faster than Zimbabwe. That's like the Big Bang compared to Zimbabwe's glacial pace. 

From Wiki: Peak Month and Rate of Inflation: Jul. 1946, 41.9 quadrillion percent

Beyond a certain point, it's irrelevant.  It's like trying to calculate what 1/0 is.  You may get different answers depending on machine precision, but it's all the same thing.  Once you hit a certain point, money isn't money anymore, it's just a scrap of paper.