Zimbabwe Back to New Banknotes, Inflation Worsens

by CoinNews.net on September 30, 2008 · 0 comments

Like a perpetual broken record repeating nearly monthly, Zimbabwe’s Central Bank introduced new Zimbabwean $10,000- and $20,000-dollar banknotes just two months after slashing ten zeros from their currency to fight inflation. That, after previous months of issuing notes ranging up to $100 billion.

While Americans may be feeling an increased change in the value of its dollar due to inflation (see inflation calculator for examples), it’s nothing compared to the Zimbabwe hyperinflation last reported at 11.2 million percent in June. Some reports indicate economists now estimate it may be has high as 50 million percent.

The latest Zimbabwe notes were produced in an attempt to combat money shortages caused by the countries’ severe hyperinflation. Their issuance drove Zimbabweans to crowded banks on Monday where lines stretched for blocks and blocks. (See photos of bank lines and new banknotes.)

The Central Bank has also raised daily limits, allowing the withdrawal of up $20,000 — equating to $200 trillion in old currency, or about $35 in US dollars.

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