Hey Pal, Can You Spare a Trillion Dollars?
By 2009 inflation in Zimbabwe, the former British colony of Rhodesia, had reached nearly 500 billion percent. Its national currency (called the Zimbabwe dollar) was worthless, and the country looked for a solution. That led to the adoption of a "basket of currencies" that included the South African rand, the Botswana pula, and the US dollar along with its own.
But government workers were still paid in Zimbabwe dollars and even though their paychecks were enumerated in trillions, it was still scarcely enough to buy a loaf of bread.
Don't Worry, We'll Just Print More
And print they did. The National Bank of Zimbabwe kept its presses rolling and shortly merchants risked jail by refusing the Zimbabwe dollar, insisting on more stable foreign currency. The entire Zimbabwean economy was essentially a black market with one US dollar the equivalent of 2.6 billion Zimbabwe dollars in 2008.
OK, We Give Up
The Zimbabwean government finally faced reality, and in 2009 it stopped printing Zimbabwe dollars and allowed people to use the currency of their choice. By 2014 80% of Zimbabweans were using the US dollar leading the government to declare it the official currency of Zimbabwe.
In June 2015 the Reserve Bank of Zimbabwe (RBZ) began demonetizing the Zimbabwe dollar making it worthless. Later than year China cancelled $40 million in debt owed it by Zimbabwe and in appreciation Zimbabwe's finance minister announced that the Chinese yuan would become the principal reserve and tender currency of the nation. But the RBZ called a halt to it and by June 2016, nine currencies were legal tender in Zimbabwe. At the time it was estimated 90% of transactions were in US dollars and 5% in South African rand.
Or Maybe We Won't
Zimbabwe experienced a short period of prosperity after dictator Robert Mugabe was replaced by a "unity" government, but it collapsed and Mugabe's corrupt Zimbabwe African National Union-Patriotic Front government began issuing bonds and coins allegedly on par with the US dollar. The so-called New Zim dollars traded at a steep discount to US dollars, causing people to hoard dollars, taking them out of circulation. This led to a new surge of inflation that now approaches 240% annually sparking protests and a black market emerging once again.
But Now You Can be a Trillionaire
Before the old Zimbabwe dollar was demonetized, the National Bank of Zimbabwe issued large numbers of banknotes in billion- and trillion-dollar denominations. These notes have become very popular with both collectors and people looking for unique novelty gift items.
Whether you want to get them as gifts, novelties, or collector's items to remind you and others what happens when monetary policy goes off the rails, The Great American Coin Company® is ready to help.
Look over our selection of Zimbabwe banknotes and pick the ones that send the message you want. Or hold on to them as souvenirs or part of your currency collection.
And for more insight into the self-destructive nature of government monetary policy take a look at this article about Zimbabwe's Monetary Death Spiral on the Forbes Magazine website.
Whether you're looking for a unique way to express your feelings, are a collector, or are an investor, be sure to browse the huge selection of U.S. and foreign coins, banknotes, and bullion available online from The Great American Coin Company. Our inventory is constantly changing, so be sure to check back often.
