Thursday, July 31, 2008

Zimbabwe Knocks 10 Zeros Off Currency

Last Updated: July 30, 2008: 6:16 AM EDT

HARARE, Zimbabwe (AP) -- Zimbabwe's central bank governor says he is knocking 10 zeros off the country's hyper-inflated currency to make 10 billion dollars become one dollar.

Old 100 Billion Dollars ($100,000,000,000)
New $10 (100 Billion Dollars after dropping 10 zeros)

Zimbabwe suffers the highest inflation rate in the world. Governor Gideon Gono says that high rate is constraining operations of the country's computer systems. Computers, electronic calculators and automated teller machines at banks have not been able to handle basic transactions in billions and trillions of dollars.

Just last week Gono introduced a new 100 billion-dollar note that is not enough to buy a loaf of bread.

Gono said on Aug. 1 the bank will issue a 500-dollar bill equivalent to 5 trillion dollars at the current rate.

Comment by Nutmegcollector
July 31, 2008

So Zimbabwe actually issued a new $5 trillion dollar note disguised as $500. If you consider the 3 zeros dropped on August 2006, this $500 is really $5 quadrillion (15 zeros) pre-2006 dollars.

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