Friday, May 16, 2008

Africa: US Dollar is still strong somewhere!


New $500,000,000 Note "For Your Convenience."

Zimbabwe's central bank has issued a new half billion dollar note as it tackles cash shortfalls due to the country's rampant inflation. The new note follows on the heels of a quarter billion dollar note released ten days ago.

With Zimbabwe's inflation rate running at a staggering 165,000 per cent in the wake of it's poll crisis, this is the fourth new high denomination note to be issued this year. No new inflation figures have been seen since February.

"Introducing the new 500,000,000 bearer cheque for your convenience," a full page Reserve Bank of Zimbabwe advertisement in the state daily newspaper reads. The new note is worth about $US2.45 and Pakistan Rupees 166.


The inflation rate in Zimbabwe reached 165,000 percent in February, the highest in the world. Since then no new inflation rates have been released.
Interesting to note that at the time of independence in 1980 the rates of Zimbabwe's currency were even higher than the US Dollars.

The new note, which should be enough to buy two loaves of bread, comes only ten days after the introduction of a quarter-of-a-billion note. The ongoing economic crisis in the southern African nation has lead to great food shortages with 80 percent of the people living beneath the poverty threshold.

Zimbabwe has just about the worst-performing economy in the world.

In Zimbabwe's case, the near-5,000% annual rate of inflation means that a loaf of bread bought today is about 50 times more expensive - in cash terms - than it was a year ago.

Remarks: Great! It's good to see the US Dollar is still strong somewhere!


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