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Zimbabwe introduces $500 million note

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  • Fri, Dec 12, 2008 - 11:38am

    #1

    krogoth

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    Zimbabwe introduces $500 million note

Zimbabwe introduces $500 million note

HARARE, Zimbabwe (CNN) — Zimbabwe’s central bank is introducing a $500 million note — the highest current denomination — as the once-prosperous southern African nation battles against spiraling hyperinflation.

A £50 million note introduced earlier in December has failed to clear long lines for cash.

A £50 million note introduced earlier in December has failed to clear long lines for cash.

Finance Minister Samuel Mumbengegwi made the announcement about the new note in a government gazette set for release Friday. On the back, the purple cotton bill will feature pictures of dairy cows being milked mechanically and a miner drilling underground, he said.

The Reserve Bank of Zimbabwe (RBZ) last week introduced a new set of denominations, including a $100 million note, but that has not helped to clear long lines for cash at banks. Some people sleep outside banks after failing to get cash.

The RBZ said a $200 million note would be in circulation Friday, together with the $500 million note.

The $500 million note is worth about 8 U.S. dollars and enough to buy just eight loaves of bread. Thursday, the greenback was trading around ZW$60 million and is expected to shoot up in light of the new note’s introduction.

Prices change on an almost daily basis as businesses now peg their prices against the U.S. dollar.

Zimbabwe has had higher denominations than the $500 million note in the past. But over the past two years, the country has slashed zeros from the amount of its worthless currency — the latest being 10 zeros in August.

Once one of Africa’s most promising economies, Zimbabwe is reeling under its worst humanitarian and economic crisis. A cholera outbreak has killed nearly 800 Zimbabweans, forcing hundreds to cross the border into South Africa and Botswana to seek treatment.

The situation has been exacerbated by the closure of government hospitals for more than a month as health personnel demand the government review their salaries and equip the hospitals with medicines and modern machinery.

In addition, 5 million people are in need of food aid, the United Nations says, in a nation that once exported food to its neighbors.

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There has been a spate of protests — including two by soldiers — over the past four weeks as people voice their displeasure over President Robert Mugabe’s policies.

Shortages of most essentials such as electricity, fuel, medical drugs and food have become a common feature in Zimbabwe. That has forced many people to flee the country.

  • Fri, Dec 12, 2008 - 03:34pm

    #2
    AZDan

    AZDan

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    Re: Zimbabwe introduces $500 million note

Hyperinflation indeed.  The note is only good for 2 1/2 weeks.  Take a close look at photo 3.

 "On or before 31st December, 2008"

  • Fri, Dec 12, 2008 - 07:41pm

    #3

    joe bender

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    Re: Zimbabwe introduces $500 million note

i now have a chance to not only be a millionaire but a billionaire or if i invest wisely i can become a gazillionaire.

zo can i stay here and do that or do i have to travel?

  • Fri, Dec 12, 2008 - 08:39pm

    #4

    krogoth

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    Re: Zimbabwe introduces $500 million note

I think you can do it from the comfort of your home. Simply go to EBAY and buy as many as you like, frame them, and then tell everyone that your a multi billionaire. Pretty easy.

  • Fri, Dec 12, 2008 - 11:58pm

    #5

    cmartenson

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    Re: Zimbabwe introduces $500 million note

[quote=AZDan]

Hyperinflation indeed.  The note is only good for 2 1/2 weeks.  Take a close look at photo 3.

"On or before 31st December, 2008"

[/quote]


Ah ha ha!

Good catch.  Look at that.

On or before….

If someone here would contact a friend or relative in Zimbabwe who would ship over a stack of various denomination notes, I would certainly pay a hefty markup – perhaps thousands of percent over face value –  to obtain some representative examples to put in my Central Banking Hall of Fame.

I’d bet others would as well.

On or before December 31st of course….

 

 

 

  • Sat, Dec 13, 2008 - 12:58am

    #7

    joe bender

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    Re: Zimbabwe introduces $500 million note

GIFT for Christmas & Someone Special – SALE
hey zo you were right here it is i am going to buy a bunch and send them to ben for his helicopter way cool. and my friends said i would not amount to much hahahahahahahahaha on them i am a gazillionaire now
This seller accepts PayPal Buy It Now $6.95  

12d 15h 14m

 

 

 

 

 

 

 

  • Sat, Dec 13, 2008 - 01:45am

    #6

    krogoth

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    500 million for 8 loaves of bread?

You know Chris, I collect money from every country I have ever visited, and some from countries that are just really hard to get or really historical, and I am dying to get my hands on one of these. I have been to Northern Africa, so I guess that qualifies for my collection. Wonder what its like to pay 500 million for 8 loaves of bread? Oh let’s just wait, we will know in a couple of years.

My favorite notes in my collection are-
Lybia with Kadafi on them (almost impossible to get)
Japanese occupation dollars used in Taiwan and the Philippines (WW II)
Iraq with Saddam Hussein
China notes with Mao on them
Civil War notes
Russian with Stalin on them
Egyptian (just really nice artwork and watermarks)
A ton of American silver certificates (been collecting them since I was 7)
 

  • Sat, Dec 13, 2008 - 02:02am

    #8

    krogoth

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    Here is our future money

  • Sat, Jan 17, 2009 - 04:05pm

    #9

    rritter2000

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    Zimbabwe unveils $100 trillion banknote

See posts above for a short history…

What a difference a month makes:

http://news.yahoo.com/s/afp/20090116/ts_afp/zimbabweeconomycurrency_20090116125326

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