HARARE, Zimbabwe (CNN) – Zimbabwe’s central bank will introduce a $50 billion note – enough to buy just two loaves of bread – as a way of fighting cash shortages amid spiraling inflation.
Zimbabwe is grappling with hyperinflation now officially estimated at 231 million percent and its currency is fast losing its value. As of Friday, one U.S. dollar was trading at around ZW$25 billion.
When the government issued a $10 billion note just three weeks ago, it bought 20 loaves of bread. That note now can purchase less than half of one loaf.
When I teach of hyper inflation during the 20’s in Germany I bring in a 1924 German Mark printed only on one side to save money on ink, its a 50,000,000 note, good enough just to buy food for the day.
I have not looked into this countries example but I am curious to see if it was just like Jamaica with the IMF and World bank forcing devaluation of the currency and now it has spiraled out of control like Jamaica did
Hyperinflation is usually the first step toward a coup. Makes sense, I mean, if suddenly everyone’s life savings was worthless you’d have a lot of pissed off people out there…
ya’ll seem to understand this pretty well. What exactly Is hyperinflation and what causes it? I can’t understand how an economy can just start inflating ten fold over night
The whole country loses confidence in the currency and begins looking to barter/use foreign currencies instead. It’s like the stock market, the more people want to get rid of something, the more the value goes down, and then more people want to get rid of their holdings.
