2008-07-23

Runaway inflation causes banknote paper shortage in Zimbabwe

No, seriously... the Zimbabwe government is running out of paper to print money on. While it is partly due to the sanctions imposed on Mugabe's regime by the international community, a large reason for the lack of paper is the absurd pace at which inflation makes worthless any money that is printed in the country.
In August 2006, the central bank issued a $5 note. A $500,000 note followed a year later. On 2 May 2008, a $500m banknote hit the streets but was swiftly near worthless, and $5bn, $25bn and $50bn notes followed just a fortnight later.
It seems that today (July 23, 2008) a $100bn note is worth 7p (0.14 $US). It would be interesting (and sad) to see what it will be worth in just a few days.
But wait, there's more... the government has put a $100bn/day limit on bank withdrawals for civilians, which can buy ~1/2 a loaf of bread. On the other hand, soldiers can withdraw up $1.5tn/day, 15 times as much. Certainly doesn't smell like a military dictatorship...

[via Guardian]

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