Zimbabwe offers new exchange rate: $1 for 35,000,000,000,000,000 old dollars

via Zimbabwe offers new exchange rate: $1 for 35,000,000,000,000,000 old dollars | World news | The Guardian 12 June 2015

Central bank discards local currency after years of hyperinflation which at one point reached 500 billion per cent.

Zimbabweans will start exchanging “quadrillions” of local dollars for a few US dollars next week as President Robert Mugabe’s government discards its virtually worthless national currency.

The southern African country started using foreign currencies including the US dollar and South African rand in 2009 after the Zimbabwean dollar was ruined by hyperinflation, which hit 500 billion per cent in 2008.

At the height of the country’s economic crisis, Zimbabweans had to carry plastic bags bulging with banknotes to buy basic goods. Prices were rising at least twice a day.

From Monday, customers who held Zimbabwean dollar accounts before March 2009 can approach their banks to convert their balance into US dollars, the governor of the Reserve Bank of Zimbabwe, John Mangudya, said in a statement.

Zimbabweans have until September to turn in their old banknotes, which some people sell as souvenirs to tourists.

Bank accounts with balances of up to 175 quadrillion Zimbabwean dollars will be paid $5. Those with balances above 175 quadrillion dollars will be paid at an exchange rate of $1 for 35 quadrillion Zimbabwean dollars.

The highest – and last – banknote to be printed by the bank in 2008 was 100tn Zimbabwean dollars. It was not enough to ride a public bus to work for a week.

The bank said customers who still had stashes of old Zimbabwean notes could walk into any bank and get $1 for every 250tn they hold. That means a holder of a 100tn banknote will get 40 cents.

The bank has set aside $20m to pay Zimbabwean dollar currency holders.

COMMENTS

WORDPRESS: 5
  • comment-avatar

    Mugabe has a degree in economics !
    Maybe the same quality degree as Amai Doctor Grace !

  • comment-avatar
    Jono Austin 7 years ago

    How to rob the populace! And they still vote ZANU PF. Lemmings the lot of them. The gold medal for stupidity goes to …Zanu PF supporters.

  • comment-avatar
    Tjingababili 7 years ago

    Silly ass!

  • comment-avatar
    johnny b 7 years ago

    Why bother to go to the bank, petrol to get there will cost more than the exchange rate and firewood probably costs more and is hard to come by. Cheaper to burn the pile of bank notes in the winter cold.

  • comment-avatar
    Sylvester M. Azane Kodwo 7 years ago

    Is this the last joke of Mugabe and his cronies? Johnny B has rightly said it, it is more economical to burn it than to carry sackloads of it to a bank ……. to get peanuts!

    By the way, how many US dollars will One Mugabillion Zim dollars (Zw $ 1.0Mbn ) fetch? How many zeros behind one is that? Somebody, please write it in standard form for me!

    Only Mugabe knows!