Zimbabwe: Where everything costs a dollar

As symbols of a failed economy go, nothing beats a ridiculous row of zeros at the end of a banknote. On my last trip to Zimbabwe I kept a $200,000 note, which at the time was the largest denomination. It was worth about 10 US cents. One of my editors at The Independent on Sunday went a few weeks later, returning home with $500,000 notes.

By the time Tendai Biti became finance minister in February the highest note was now $100,000,000,000,000 (that’s one hundred trillion dollars). It was worth about 27 cents.

One of the first things Biti did when he took over as finance minister in February was to abolish the Zimdollar. He’s replaced it with the US dollar, which has improved things dramatically. Prices used to double over the course of a day. Now a loaf of bread is $1 one morning and $1 the next.

There is one problem though. There are no coins. The smallest denomination is $1, which can be tricky if the cost of the item you want to buy is less. Shopkeepers are giving change in sweets or IOUs. This morning I tried to buy a Coke for 50 cents. I’ll go back tomorrow to cash in my IOU.

Advertisements

2 responses to “Zimbabwe: Where everything costs a dollar

  1. When I was in Zimbabwe in April, I had a similar experience, being given a $50 trillion and $100 trillion dollar bill for virtually nothing. The hotel where we stayed were happy to have Botswanan pula, South African rand and U.S. dollars, but not their own currency.

  2. Banks saw an exponential growth in bank accounts. Why? The systems could not handle trillions & trillions so new accounts were needed to deposit more (worthless) money!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s