Zimbabwe’s Reserve Bank Governor, Gideon Gono, announced yesterday he will be striking three more zeros from current bank notes as well as introducing yet another set of currency. Earlier this year, Gono took the first three zeros in an effort to cut inflation rates. Obviously, it didn’t work. And it’s not going to work this time, either.
So far, the government’s only solution to its inflation problem has been to have the Reserve Bank of Zimbabwe print more money.
Twelve months ago, a Zimbabwean might have paid Z$750,000 for a particular item. After Gono’s first striking of zeros, that same item would’ve cost Z$750. Great plan, right? Wrong. Inflation has been rising exponentially — reaching levels near 20,000% earlier this year — and the Z$750 product might now cost Z$75,000,000. If the zeros were still there, that would be a staggering Z$75 billion! Not too worry though, as Mr. Gono comes to the rescue once again. We’re back in the millions. Phew.
Zimbabweans will have 24 hours to exchange their supply of notes — if they even have one — for the new currency hot off the printing presses.
As a side note, I’m happy to say, my wife and I have been millionaires, billionaires and trillionaires all in the same year. And on our most recent trip to Zimbabwe just last week, the unofficial exchange rate increased from US$1 : Z$250,000 to US$1 : Z$550,000 in only 13 days. Shit, it’ll probably hit Z$600,000 before this article is even published.
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