emersonbiggins wrote:The kabuki theater continues...Zimbabwe devalues currency, dropping 10 zeros
The Associated Press
Published: July 30, 2008
HARARE, Zimbabwe: Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country's reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country's economic and political unraveling.
Shop shelves are empty and there are chronic shortages of everything including medication, food, fuel, power and water. Eighty percent of the work force is unemployed and many who do have jobs don't earn enough to pay for bus fare.
One third of Zimbabweans have become economic and political refugees. Another third is dependent on foreign food aid. But Mugabe barred non-governmental organizations from handing out food last month, claiming they were supporting the opposition.
On Wednesday, central bank governor Gideon Gono announced he was dropping 10 zeros from the currency, effective Friday. That comes a week after he introduced a 100 billion-dollar note which was not enough to buy a loaf of bread.
...
IHT
emersonbiggins wrote:The announcement to begin minting coins, though, is surprising, considering the costs of metal alloys surely exceeds (or, rather, WILL exceed) the face value of the coins in no time.
Zimbabwe drops 10 zeros from its currency
A couple possibilities come to mind:emersonbiggins wrote:The announcement to begin minting coins, though, is surprising,
considering the costs of metal alloys surely exceeds (or, rather,
WILL exceed) the face value of the coins in no time.
That's so screwed up it's hard to imagine!News Article wrote:Inflation, the highest in the world, is officially running at 2.2 million
percent in Zimbabwe but independent economists say it is closer to
12.5 million percent.
Economist John Robertson said the new bills would soon be
worthless since the rate of inflation continues to skyrocket.
What costs $1 at the beginning of the month can cost $20 by month's end, he said.
steam_cannon wrote:That's so screwed up it's hard to imagine!News Article wrote:Economist John Robertson said the new bills would soon be
worthless since the rate of inflation continues to skyrocket.
What costs $1 at the beginning of the month can cost $20 by month's end, he said.
oops, sorry, my bad. I assumed linear growth and not exponential growth.
so at 2.2M% inflation in a year works out to around 0.114%/hour
or
Z$1 = Z$1.028 in one day
Z$1 = Z$2.33 in one month
For 12.5M% inflation that works out to 0.134%/hour
or
Z$1 = Z$1.033 in one day
Z$1 = Z$2.71 in one month
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