Zimbabwe’s Hyperinflation Solution: Slash Zero’s

By misbah | Published: July 31, 2008

going-out-of-business-sign

Our friend Gideon Gono (Governor of the Reserve Bank of Zimbabwe) has decided to tackle the ultra-hyperinflation pummeling Zimbabwe in one fell swoop. His solution? Lopping zeros off of the Zimbabwean Dollar — ten of them! That means, as of August 1st, a 10 Billion Zimbabwean Dollar (ZWD) bill will be worth one ZWD. That’s a 10 000 000 000 : 1 ratio…. or a 99.99999999% devaluation!

hundred-billion-dollars-eggs

A report from the BBC helps to put things into perspective, 100 Billion ZWD will buy a few eggs, with a tray of 24 eggs costing somewhere around Z$600bn. Better not break one of those!

This entry was posted in Economics and tagged , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

One Trackback

  1. By Letter Re: Currency Inflation Expectations for the US on October 21, 2008 at 10:40 PM

    [...] you shall grant a remission of debts" – Deuteronomy 15: 1). Because without a Jubilee, even Gideon Gono couldn’t come up with the cash needed to settle the mountain of debts and [...]

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>