10bn to one: how Zimbabwe is tackling inflation
Wednesday, 30 July 2008
Reuters
Zimbabwe issued a new 100 billion dollar note just earlier this month. Now it will become 10 dollars...
Zimbabwe is knocking 10 zeros off its hyper-inflated currency to make 10 billion dollars become one dollar.
The country is suffering the world's highest inflation of over two million per cent
Central bank governor Gideon Gono said the high rate is preventing computers, electronic calculators and bank machines handling basic transactions which come to billions and trillions of dollars.
Just last week Mr Gono introduced a new 100 billion-dollar note that was not enough to buy a loaf of bread.
Mr Gono says the new rate will start on Friday with the issue of a 500-dollar bill equivalent to 5 trillion dollars at the current rate.
President Robert Mugabe warned businesses he will impose a state of emergency if they use the economic crisis to profiteer.
In a televised address he told them not to "drive us further" but said if they did the government would impose emergency measures.
Meanwhile South African President Thabo Mbeki was heading for Zimbabwe as talks he is mediating to end the country's crisis faltered.
His spokesman said Mr Mbeki will meet Mugabe, having already talked to main opposition leader Morgan Tsvangirai in South Africa yesterday.
Mugabe and Mr Tsvangirai agreed last week to power-sharing talks to end months of state-sponsored electoral violence that has killed more than 150 opposition activists.
Talks began six days ago in South Africa. Both men say they won elections and should lead Zimbabwe.
Several officials have said the talks are deadlocked over who would lead a new government.

If you dont stop printing money to pay for your failings then nothing will change. 10 Billion dollar question is how long will it take for another new currency to be issued? Following the unofficial rate of exchange on www.ZimbabweanEquities.com is very interesting.
Posted by Graham | 03.08.08, 11:49 GMT
"Dropping naughts" has many problems in semi-literate and rural domains. It offers latitude for profiteering and fraud, requires adjustment of many types of metering, and the exact dating of transactions produces inaccuracies and disputes.
Anticipating this development in Zimbabwe a system of numeration for macro (and micro) numbers was developed some years ago. If interested write to me via The Independent.
Posted by JP Driver-Jowitt | 31.07.08, 12:35 GMT
I'm 12 procent with you Phil, but with what use?
Posted by Robie | 30.07.08, 21:49 GMT
Maybe that's what the US should do with it's national debt - but would it work?
Posted by kevin | 30.07.08, 20:53 GMT
what ever comes from the deal
the the feelings wont be real the cold clash of will close the door on the world, for the true free men strive against all odds, see the true dictatorships the enemy within and the evil stew they are cooking..
forget money...forget attachment...WHAT ABOUT PEOPLE?
Posted by PHIL | 30.07.08, 20:28 GMT