Zimbabwe introduces $100 billion note

[Owlscrying]

Zimbabwe, grappling with a record 2.2 million per cent inflation, has introduced a new 100 billion dollar bank note in a bid to tackle rampant cash shortages, the central bank has said.

The new note will go into circulation on Monday, the bank said in a statement cited by state media, joining about half a dozen new high denomination notes already issued this year.

But one Zimbabwean told the BBC that the new note would not even cover the cost of his bus fare home from work. "It's worthless," he said.

"Nowadays for my expenses per day, I need about 500 billion. So a hundred billion can't do anything. Because for me to go home, I need like, 250 billion. So this hundred is worthless."

In January, a 10 million dollar note was issued, then a 50 million dollar note in April. In May, notes for 100 million and 250 million dollars were issued, swiftly followed by those for 5 billion, 25 billion and 50 billion.

The southern African nation, currently gripped by a post-election crisis, has been ravaged by hyperinflation which shot up from 165,000 per cent in February to 2.2 million in June.

Independent economists however believe the official inflation figure is grossly understated, estimating it could be running between 10 million and 15 million per cent.

Zimbabwe's chronic economic crisis has left at least 80 per cent of the population living below the poverty threshold and mass shortages of basic goods in shops.

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[Chasexc]

wow....I feel for these people and any other country ravaged by hyperinflation, but I at least hope they don't have carry around wheelbarrows full of money.

[GreyWeather]

I read in the paper that the German manufactuer of the paper the money is printed on, have pulled out of selling it to Zimbabwe. Being as the money isn't worth the paper it's even printed on.

And of course, Mugabe blamed Britain for it's hyperinflation.

[Katya]

Wow o_o That's sad ): It reminds me of what I read about Germany's depression, only worse...

Isn't Mugabe refusing to step down from office/release the results of the election? That's what I last read in like... May. School project.

I wonder how much a new president would help things? I can't remember the name of the guy who ran against him...

[heinrich1858]

wow....I feel for these people and any other country ravaged by hyperinflation, but I at least hope they don't have carry around wheelbarrows full of money.

They do carry wheelbarrows of money. Europe and other countries have had their problems , but they have bounced back. Africa is unable to solve it own problems. They need skilled immigrants that can tackle their skills shortage etc. They will never solve their own problems.

I am a South African and about 3- 5 million Zimbabweans are now in South Africa stealing and robbing us blind. Africa just sucks. Google Jacob Zuma or Jackie Selebi and you will find out what a joke africa really is.

I read in the paper that the German manufactuer of the paper the money is printed on, have pulled out of selling it to Zimbabwe. Being as the money isn't worth the paper it's even printed on.

And of course, Mugabe blamed Britain for it's hyperinflation.

Blair and Bush!!!!!! They should just shoot the old demented man (Robert Mugabe) He should be in a mental institution.

Is there a world record for inflation? I think Mugabe just made it to the Guinness book of Records.

Edited July 21, 2008 by heinrich1858