Mad money: 35 quadrillion for $1 Bashny.Net

About this subject already all know, but now came this news. The Central Bank of Zimbabwe on Monday began the process of the final withdrawal from circulation of depreciated almost to zero of the national currency and exchange it for U.S. dollars.

Two million one hundred ninety six thousand six hundred seventy six

Bank account balance from zero to 175 quadrillion Zimbabwean dollar will be exchanged for $5. Amounts in excess of this amount will be exchanged at the rate of 35 quadrillion Zimbabwean dollars for $1.

Cash Zimbabwean banknotes, which are in demand as Souvenirs because of its fantastic value, will be exchanged at the rate of 250 trillion (in banknotes 2008) for $1. The exchange must be completed before September.

Let's find out how it happened:
 

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The highest level of hyperinflation (we would even call it supercheapairplaneti) in recent history was recorded in the South-Eastern African country of Zimbabwe. And fixed not so long ago — in 2008.

Every Zimbabwean was not even billionaire — sextrillion. One sextrillion it is such a figure— 1 000 000 000 000 000 000 000, or simply that's 10 to the 21st degree. Therefore, our Ukrainian coupon million-billionth of a hyperinflation of the 90-ies was compared to the situation in Zimbabwe was child's play in the sandbox. And by the way Zimbabwean dollars (which with the original, green and so sweet American dollars have in common only the name) an absolute record for the number of zeros on banknotes.

But in fact, most Zimbabweans it was not fun to buy a loaf of bread took a whole bag of banknotes for 100000000000000 Zimbabwe dollars. Since 2007 the rate of growth of inflation was several thousand percent per month, or here's a good example — a bottle of Zimbabwean beer in severe inflationary times rose in price by half every hour (!), you want night more beer to buy, and the money you have even chips is not enough.

Twenty seven million nine hundred forty nine thousand four hundred fifty nine

But why it happened with this country that not so long ago was quite successful. The problems in the economy of Zimbabwe began in 2000, with the failed land reform of President Robert Mugabe.

Unlike other African countries, Zimbabwe for much longer was ruled by white people, the descendants of English colonists who came to these lands in the 19th century and gained independence only in 1980-m to year. So far this country had another name and was called Rhodesia, after one enterprising Englishman, Cecil Rhodes. With the reign of the first African President of Zimbabwe, Robert Mugabe actually started the problems in this country. After all, their first steps, Mugabe began like any decent dictator — with the elimination of all potential political opponents, establishing a one-party system (the only legal party of course was the party of the President), the elimination of the post of the Prime Minister (the President actually went through the whole power in the country). But as noted above the current economic problems began with the failed land reform of 2000.

The fact that at that time in Zimbabwe remained a significant part of the white population, they owned a considerable part of the farms that produced all the necessary agricultural products. So Mugabe did a suicide move for the Zimbabwean economy, white farmers who feed the country were declared "enemies of the state", their farms and the farms were confiscated in favour of black Zimbabweans. During this period, most white Africans were forced to leave the country, the international community for this hard step imposed against Zimbabwe by the economic sanctions, and the black Zimbabweans, who occupied the farm of the descendants of their colonizers was a bad Manager. As a result, the country has fallen sharply the production, closed a lot of businesses, hundreds of thousands of people lost their jobs. In fact, Mugabe in his quest to restore historical justice (it was under this slogan was carried out land reform, got farms of white farmers) cut the branch on which he sat (or rather sat Zimbabwe's economy).

And then knocked on the door Madam inflation any economist say that inflation is nothing but the impairment of the money supply, when the quantity does not correspond to the mass of commodities in the country, or scientifically speaking, does not correspond to GDP (gross domestic product). Therefore, further reasons more than fantastic Zimbabwean inflation can be explained simply when money is printed, not backed by anything, they turn into just a piece of paper, the real price which is negligible. Reached the point of absurdity — the Zimbabwean dollar was cheaper than the paper on which was printed, therefore, to go to the toilet in great need, it was more profitable with Zimbabwean dollars (using them a few not on purpose), what to buy for the money real toilet paper. (And here's another interesting fact, in Zimbabwe, even a special law was officially banned the use of Zimbabwean dollars as toilet paper).

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Some more Chronicles of hyperinflation inflation:

In 2009, the Minister for planning Zimbabwe's Elton Mangoma announced that the Zimbabwe dollar ceased to exist. This currency has existed for almost thirty years. In 1980 it replaced the Rhodesian dollar and was held without any incidents until October 2005.

In 2005, one pound was given 1000 Zimbabwean dollars, while the initial value of one Zimbabwean dollar with the introduction of currency in circulation in 1981 was $ 1.47 us dollar. The situation seems to be not fatal, however, the Reserve Bank of Zimbabwe announced denomination, and in August 2006 he released a new dollar worth 1,000 old ones. But the first step is the hardest.

Almost nothing is provided, the new Zimbabwean dollar collapsed. In September 2007, the official exchange rate of the national currency amounted to 30 thousand one dollar, although on the black market for the American dollar gave already 600 thousand. This case is not over. By 2008, the Bank of Zimbabwe issued banknotes in denomination of one hundred trillion dollars.

How to deal with it? Of course, the new denomination. In August 2008, over ten billion dollars of 2006 gave a new one. It is easy to guess that the next denomination was already in the offing.

Prices at that time were growing at a frantic pace, but still try to understand how much was paid in 2008 for certain products. The sausage roll was worth about 30 million, 13 pounds of potatoes in early March 2008 was worth $ 90 million, but by mid-month is already 160. Bread then cost 10 million for a loaf. By July a can of beer cost $ 100 billion.

Here's the news 2008:
 

Today it became known that in Zimbabwe runs out of paper for printing money. In this African country for several years inflation is breaking all world records at approximately forty-million percent. Not so long ago the country was issued a banknote in 100 billion local dollars.

In Zimbabwe released $ 100 billion dollars
                          

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Prices on local markets are such that the money must be in big bags

A hundred billion to buy three eggs

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This is the previous records of the local Central Bank, released this winter

Eighty five million sixty thousand nine hundred fourteen

             

Seven million four hundred thirty four thousand five hundred seven



In February 2009, the government again re-released dollar. Now, one American dollar was one trillion Zimbabwe dollars 2008 sample. Madness it was time to stop. Even at the national post has already taken us, not Zimbabwean dollars. 12 APR 2009 the country's currency ceased to exist.

In 2009, after a period of record in the world history of hyperinflation, the national currency virtually ceased to be used in circulation, it was replaced by US dollars and South African Rand, 2014 in the country as means of payment are also accepted, Chinese yuan, Japanese yen, Indian rupees and Australian dollars. At the same time formally the national currency was abolished.

Eighty six million three hundred thirty three thousand nine hundred fifty nine

Inflation in Zimbabwe was in 2008, a record 231 000 000%, and unofficial estimates were even higher. Growth of consumer prices since the country is not published.

The current GDP of Zimbabwe below the level of 2000, when the government decided to nationalize land belonging to white citizens, which led to a sharp drop in agricultural production and exports.published 

 

P. S. And remember, only by changing their consumption — together we change the world! ©

Source: masterok.livejournal.com/