Billions of Zimbabwe Dollars and Zimbabwe Inflation in 2008
By Village Mayor • Nov 1st, 2008 • Category: Latest Post, MiscellaneousZimbabwe inflation rate reached outstanding 2,000,000% (even more probably) in 2008. For me it’s really hard to imagine such stupid thing happening to country’s economy.
For such a bad Zimbabwe’s situation is responsible Robert Mugabe (president) and his government. They just keep issuing bigger and bigger bills.
And I have to say, denominations got ridiculously big: the latest was Z$ 100 000 000 000. And all this happened in the last couple years.
Funny things is, that the government has announced a longer-term plan to dispense with the zeroes entirely, turning $10 billion into $1. And then what? $1 to $1billion once again?
This little guy bellow may look like a millionaire, but probably he’s just going to buy a chewing gum or a lollipop.
, Images via: cha.lt
So what went so wrong?
Basically government has no clue how to rule the country. Fortune magazine writes: “If anyone is to blame for the economic crisis, it’s Mugabe himself. In 28 years he has managed to take one of the wealthiest countries in sub-Saharan Africa and ruin it in a stupefying variety of ways.”
So his first “golden” idea was to annihilated the agricultural sector by seizing commercial farms and giving them to his friends. Sadly they had no idea how to run farms and failed to use the land.
Secondly, he prosecuted a war in the Congo, spending $1 million (U.S.) a day in hopes of stealing enough land and resources from the Congolese to make a profit. Zimbabweans didn’t like that and have tried to vote him out of office, but he has punished them with violence and economic repression.
These and many other stupid decisions made many people leave the country. OK, this post is not about politics it’s about money (bills). So let’s get down to business. First take a look at this Zimbabwe inflation chart. So if you could buy a glass of beer for 10 Zimbabwean dollars back in 2006, now the same glass would cost you more then 10 000 000 Zimbabwean dollars. Alright, maybe that’s not very accurate but keep reading and you will understand.
On 1 August 2006, the new currency was introduced, with bearer cheques in denominations of 1, 5, 10 and 50 cents, 1, 10, 20, 50, 100, 500, 1000, 10,000 and 100,000 dollars. Bearer cheques of 5,000, 50,000 and 100 000 dollars were issued in March 2007. According to wikipedia it’s the third Zimbabwean dollar.
Image credit: Sokwanele – Zimbabwe
Image credit: zzathras777 and larskflem
These are ‘Bearer Cheques’, so-called ‘money’ that has an expiry date. They have no watermark or little piece of silver because that would be too expensive. Yep, when you are printing brand new bills almost every month it gets expensive.
On 14 November 2007, it was reported that the RBZ was planning to issue more bearer cheques in denominations of 500,000 and 1 million Zimbabwe dollars. Bearer cheques denominated below ZWD 10,000 are to be discontinued.
Image credit: cha.lt
January 18, 2008 the Reserve Bank of Zimbabwe is releasing the following bearer cheques into circulation: one million dollars, five million dollars and 10 million dollars.
Image credit: Gregor Rohrig
This quote I find very interesting. It sounds really something. Maybe it’s because of word “millions”. 
“Further to provide relief and convenience to the transacting public, daily cash withdrawals have been increased from the current Z$50 million to Z$500 million per individual. This takes effect from Friday,” Reserve Bank Governor Gono said.
On 4 April 2008, it was reported that twenty five million dollar and fifty million dollar bearer cheque was being issued. The RBZ also increased the maximum withdrawal limit for individuals to $5 billion a day.
On May 5, 2008, it was announced that one hundred million dollar and two hundred and fifty million dollar bearer cheques were to be issued.
Image credit: ZeroOne
On May 15, 2008, it was announced that five hundred million dollar bearer cheques were to be issued as of May 20. It was also announced that agro cheques in the amounts of 5, 25, and 50 billion dollars would be issued on the same day. All of these will be dated to expire at the end of 2008.
Image credit: ZeroOne
On July 19, 2008, it was announced that agro cheques in the amount of 100 billion dollars were to be issued as of July 21.
Image credit: Mr Ush
And now the most funny / sad part of the story. With that big inflation you have to carry a lot of money. So let’s take a look on Zimbabwean streets.
In December 2007 kid receives some change… 200 000 Zimbabwean dollars is aproximatly USD 0.10
Images via: cha.lt
In February Z$ 200 000 denominations are worthless.
Images via: cha.lt
Going out? Take a separate bag for cash.
Images via: cha.lt
Just 60 million dollars for sweets and some millions for a bottle of beer…
Images via: myintrestingfiles.com
If you have some other interesting photos about this situation in Zimbabwe and don’t mind sharing, drop a line in comments or write an email at info(at)villageofjoy.com. Cheers!
Village Mayor is
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October 10th, 2009 at 12:10 pm
America was limited from borrowing Trillions of dollars from China by Timmie Geithners poor Mandarin! The asshole went begging in Beijing, baring his teeth and dictating, in broken English, strewn with Yiddish colloquialisms, to an Audience of Chinese intelligentsia, all, multi-lingual, all Ph D’s all in government and all of them laughed right out loud in his face! Later, Obama’s overtures for Trillions in loans were turned down flat by the Chinese! Now: Obama wanted, or even needed to ask for Trillions, We had the need, and were turned down! This did not erase the need! It still exists! American “fiat” money has lost its place of trust in the world, and altered the way the world deals completely! We are about to reach into our pockets and come up about a few trillion dollars short! The next “Down cycle” in our cyclic, Capitalistic economy will be a very steep sided abyss, from which there will be no escape! Truth is, we consume 80 % of the worlds goods, and are living unsustainable high on the hog, as the oil goes to the highest bidders, the Asians, not us! Americans stand to endure a severe ass-kicking on world markets shortly, and severe inflation at home caused by money printing by the government! Hide your virgin daughters, camoflage your wells, lock up the Solar cells, Apt they are stolen right off your roof, and arm yourself to the fvcking teeth, the marauding Anarchists soon on the prowl, will render your very arse for fuel oil if they catch you on the street after dark! Our Armies held home to stop the blood-shed, America doomed! The Dark Horse Rides On, America! The Dark Horse Rides On!
July 6th, 2009 at 10:08 pm
Love the pictures in this story. Mugabe really needs to step down, the sooner, the better. thumbs up on su!!
May 7th, 2009 at 12:26 am
I heard (might be a myth) that a fella in Zimbabwe was going to the bakery with a wheelbarrow full of cash to buy a loaf of bread when he was robbed at knife point. They left the cash and stole the wheelbarrow.
March 24th, 2009 at 6:24 pm
…buddy can you spare five hundred billion?
March 24th, 2009 at 5:25 pm
Cheer up brethren, the word works! God is able..
March 19th, 2009 at 5:21 am
Did no one learn from the economic crisis Germany faced in the early 1900’s?
March 17th, 2009 at 2:32 pm
whatever!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
March 14th, 2009 at 7:04 am
exactly where Obama is leading us….
March 13th, 2009 at 1:05 pm
It has a lot to do with Robert Mugabe not knowing anything about economics. When an economic crisis happened in 2001 he responded by printing tons of money which lead to huge inflation. He was a main player in getting the country liberated in 1979 and has been seen as a national hero ever since; which is why he has stayed in power and kept contributing to the economic downfall there. To his credit he has helped Zimbabwe achieve the highest literacy rate in Africa.
March 13th, 2009 at 12:49 am
#### NOW THEY ALL CAn BUY THERE CRAcK !!
March 12th, 2009 at 10:43 pm
The government caused it by printing too many bills. The more bills in circulation, the less worth it has. Instead of stopping their cash printing, the government decided to, idiotically, just keep printing higher denominations. And yes, our US government is doing the same thing (although not nearly to the extent the zimbabwens did)
March 12th, 2009 at 11:47 am
This is what happens when the people in power take private property and redistribute it to those it thinks “deserve” the property more. Governments, are always parasites on the economy, but when they expand beyond basic functions, they, like parasites cause the host (those businesses and individuals who create wealth by providing goods and services that are wanted by the populous) to with and perhaps die.
Money,especially paper money, is simply a portable measure of wealth or property. Unfortunately, paper money that is not backed by real wealth (gold, silver, some measure of real wealth) can be printed willy-nilly by the government, but that does not mean that the people (or the market) does not understand the “real” value of the fiat money, and prices inflate accordingly.
Remember that Germany was the preeminent center of culture and finance before WWI, and a few decades later Germans were required to push wheelbarrows full of money to purchase a loaf of bread. This is where the USA is headed with its current policies of confiscation. It has been much more subtle than Mugabe’s theft with violence against the white farmers who were holding up Zimbabwe’s economy, in that we have hundreds of taxes and thousands of regulations that add to the expense of doing business in the USA, and the IRS is the armed (yes they may carry weapons) force that ensures compliance with initial level of taxation. Other regulatory agencies (code enforcement, law enforcement, and the host of alphabet soup agencies) can show up at the business and in some cases lien the property.
The present policies of the USA will result in destruction of wealth, exodus of the wealthy (look at all the businesses that are leaving California as a microcosm of what will happen–movies, construction, manufacturing, electronics)and wealth producing (many companies go international because the USA has the 2nd highest corporate tax rates), inflation, and the rationing of goods and services (as goods and services become more scarce, they either cost more in a free market, or become rationed if run by the government–look at health care in Great Britain, Canada, and Sweden).
James Foy
Apple Valley, CA (but looking to move)
March 12th, 2009 at 12:58 am
My god, its Snow Crash in Africa.
March 10th, 2009 at 8:10 pm
hehe i remember inflation in Serbia in the nineties. Try…tam-tam-taaaaa:FIVE HUNDRED BILLION DINARS:
http://upload.wikimedia.org/wikipedia/sr/0/0d/500milijardi.jpg
March 10th, 2009 at 7:50 pm
MAKE IT RAIN!
March 10th, 2009 at 4:44 pm
So how does one stop the inflation? Start using a foreign currency?
February 15th, 2009 at 6:44 pm
rule of law, and ordinary people suffer
January 28th, 2009 at 11:28 pm
its only a matter of time before American money is like this..
:-[
I really hope it doesnt get this bad..