Friday, April 03, 2009

100 Billion Note is Useless Now

This is a Z$100 billion dollars note for the nation of Zimbabwe.

It's worthless as not long after the new Z$100 trillion note was circulated to overcome the ever increasing inflation rate that was running into millions of percentages. To be precise, 231,000,000% in the third quarter of 2008.

The people in the Zimbabwean are no economists at all or do not have any good advise from any specialists in the nation. Everyone was in just to ride on getting the side incomes while working with the government. Unfortunately, at the detriment of the general public.

How much is Z$100 trillion dollars worthed actually? It's only US$30. Pathetic isn't it ...

The money is growing smaller and smaller each and the public was forced to withdraw more and more money to survive. How much can they withdraw to meet the ever increasing prices of daily goods required?

Banks do not have enough monies for the public to withdraw and people even found that it was more expensive to work than not to work. A teacher's present salary is only worthed US$1 and to catch a bus to the school is US$2 ...... thereby leading to an unemployment rate of 80% now.

I have been following Zimbabwe's predicament since 2007 and the central bank, under useless guidance from some so-called professionals, kept adding a numeric zero to their currency note to overcome the inflation and continued to print new monies.

I did mention that by adding more numeric zeros in the currency notes does not help at all as the root of the problem was not the money. In Aug 2008, the central bank re-valued their Z$10 billion into 1 Zimdollar, efffectively cutting away 10 zeros. They thought they have made it. How wrong!

The inflation continued and continued, the new currency was changed and changed again till it reaches Z$100 trillion dollars in Jan 2009 in a short five months.

Now, how are you going to carry your monies around when you require Z$1,243,255,000.00 to pay for your meal in the Victoria Falls Hotel.

The people in the Zimbabwean government and central bank, Reserve Bank of Zimbabwe, cracked their heads again ....... they could be really doing their work but they are really lost in their own world.

The solution? Cut the zeros behind the Z$100 trillion dollars ..... it's so simple only.

What's the value now? Z$1 trillion = Z$1.

To overcome the damages, foreign currencies are allowed to be traded and workers' salaries are payable in foreign currencies too. Practically, the Zimbabwean dollar is useless.
Tags: Zimbabwe, Zimbabwean Dollar, Trillion Dollar Note, Billion Dollar Note, Victoria Falls Hotel, Reserve Bank of Zimbabwe, Special Agro-Cheque

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Blogger Ted said...

Its really sad right... there are just so many things wrong in Zimbabwe and everyone is really suffering for it.

03 April, 2009 12:55  
Blogger WanWan said...

wow.. a trillionaire there.. but really lo.. adding all the zero doesn't really help...

Value doesn't mean anything.. its us "human" give it the value a meaning..

03 April, 2009 18:19  
Blogger Johnny Ong said...

ted - the govt is having infighting also

wanwan - true on what u have said

03 April, 2009 19:11  
Blogger mknace said...

how sadd...

30 April, 2009 23:49  
Blogger Johnny Ong said...

mknace - tat's how bad when the govt has no integrity left in it

02 May, 2009 13:17  

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