Wednesday, August 02, 2006

Cutting Back a Bit

Savers besiege banks after Zimbabwe lops zeros off banknotes
By Peta Thornycroft and Christopher Munnion in Johannesburg
(Filed: 02/08/2006)

Banks in Zimbabwe were swamped by customers yesterday after the central bank announced that three zeros were being taken off the Zimbabwe dollar to counter the 1,200 per cent inflation rate, the highest in the world.
The country's rampaging inflation has obliged Zimbab-weans to carry large blocks of currency for the most basic commodities. A loaf of bread, for instance, can cost more than a million Zimbabwe dollars - around £5.
Banks have also struggled to keep pace as their standard computer software strains to deal in 14-digit trillions and even larger quadrillions in commercial dealings. Everyone will now ignore the last three zeros on paper money.
The new official exchange rate will be 250 Zimbabwean dollars to one US dollar instead of 250,000.
Daily Telegraph


Blogger Bob said...

I can't comprehend or understand inflation at this level. Too have a wheelbarrow full of money and be poor is strange. No wonder I get E mails from Africa offering millions from some abandoned bank account for just a few hundred dollars.

9:48 AM  
Blogger ByronB said...

It's absolutely frightening, isn't it. And as usual, it's the poor ordinary citizen who suffers. Mugabe has ruined that country.

I used to get 4 or 5 of those would-you-like-my-millions emails a week at one time - mostly from Nigeria - but they seem to have dried up a bit now. I can't imagine anyone actually falling for that scam.

12:53 PM  

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