Zimbabwe $200 Million Notes to Fight Inflation

by Mike Unser on December 8, 2008 · 0 comments

Zimbabwe plans to print new $200 million notes in yet another attempt to ease severe money shortages from out of control inflation, known as hyperinflation.

Reports indicate Zimbabwe Finance Minister Samuel Mumbengegwi made the announcement Saturday, just two days after the country’s Central Bank issued $100 million, $50 million and $10 million dollar notes.

According to CNN, those launches caused prices to spiral further upward, with a loaf of bread surging to $35 million from $2 million.

Zimbabwe’s inflation is pegged at some 231 million percent. A far, far cry away from the current U.S. annual inflation rate of 3.7 percent. Ironically, while bread may cost millions in Zimbabwean notes, sellers on eBay have found a market for smaller Zimbabwean dollars at U.S. auction prices that could easily buy several meals.

In September, Zimbabwe introduced $10,000- and $20,000-dollar notes. In July, it slashed ten zeros from its currency. And prior, it issued notes ranging up to $100 billion. All were measures to fight inflation, and none worked as the fundamental causes remained.

Zimbabwe use to be one of the most prosperous nations in Africa. It is now plagued in turmoil and in meltdown. The United Nations has said that more than half of its population is in dire need of food and clean water. World leaders are calling for the departure of Mugabe, who has ruled Zimbabwe since the country gained independence from Britain in 1980.

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