Monday, May 05, 2008

Have You Got Change for $250,000,000?

It's gotten way beyond ridiculous in Zimbabwe.
ZIMBABWE'S central bank, grappling with record-breaking inflation, has introduced a 250,000,000 dollar note.

"The reserve bank of Zimbabwe's governor Gideon Gono has unveiled a new 100 million and 250 million dollar... note and this will be in circulation starting (Tuesday),'' reported state television.

The report said the new note was for "the convenience of the banking public and the corporate sector".

This is the second set of high denomination notes to be issued this year, the last on April 2 when a 50 million dollar note was put into circulation after the introduction of a 10 million dollar note in January.

Last December 19, Mr Gono announced the immediate introduction of higher denominations of banknotes in a bid to tackle cash shortages fed by runaway inflation.

The following day, 250,000, 500,000 and 750,000 Zimbabawe dollar notes officially came into circulation.

The southern African nation, gripped by a post-election crisis, has been ravaged by hyperinflation which reached 165,000 per cent in February.

It decided recently to float its currency to eliminate speculation on the black market.

The official exchange rate in Zimbabwe has been kept at 30,000 Zimbabwe dollars for one US dollar since September 2007 - but on the thriving black market, one US dollar can be exchanged for around 100 million Zimbabwe dollars.
Fear not for Zimbabwe, however, as the UN is, ahem, showing concern for the political situation.

What a relief.

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