The recent death of longtime dictator Robert Mugabe reminds us of the effects politics can have on the value of money. It’s bad enough when ostensibly well-meaning policymakers fiddle with a nation’s economy and money supply, but when despotic regimes dictate programs in their own interests, economic chaos usually follows.
There’s no better illustration than that of the nation of Zimbabwe and the reign of Robert Mugabe.
The Promise of a New Nation
When Zimbabwe was born from the former Republic of Rhodesia in 1980, it established its own currency, the Zimbabwean dollar ($Z). At its inception, the $Z was officially pegged at 1.47 US dollars, a strong showing although this did not reflect its actual purchasing power due to uncertainty about the new country’s future despite an initially strong economy.
Those concerns proved well founded when the new government, headed by eventual strongman Robert Mugabe set about political and land reforms.
The Road to Ruin
Aggressive land reforms and political corruption led agricultural, mining, and manufacturing output to plummet and foreign capital to flee. The central bank tried to prop up the economy by printing more local currency to replace the absent foreign money, leading to ever-increasing inflation.
When the Mugabe government polices of excluding white investors, involvement in neighboring wars, and stifling domestic tribal unrest led to economic sanctions by the European Union, the US, and the International Monetary Fund, the Reserve Bank of Zimbabwe (RBZ) responded by printing even more money. By 2009, inflation had gotten so extreme that the RBZ began printing banknotes with denominations in the millions, billions, and eventually, trillions.
Attempts have been made in recent years to bring some measure of sanity to the Zimbabwean economy including abandoning the $Z in favor of stable foreign currencies and in 2016 instituting the US dollar as the nation’s official currency—at an exchange rate of $1 US to 35 quadrillion Zimbabwean dollars.
Relics & Reminders
Before the 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.
