Zimbabwe introduces a Z$100bn banknote

By May 15th it was possible to report that our dismal predictions had proven accurate, with the issue of a 500m note. Today I was reading that now the central bank is to introduce a banknote worth Z$100bn in response to rampant inflation - but the note will barely cover the cost of a loaf of bread. Some Zimbabweans are already calling for higher denominations in a country where the official annual inflation rate has exceeded 2,200,000%. Independent economists believe the real rate is many times higher.

Zimbabwe’s meltdown has left at least 80% of the population in poverty, facing mass shortages of basic goods. Locals say that the latest note is already worthless, and does not even cover their daily lunch. According to the BBC: “Nowadays, for my expenses a day, I need about Z$500 billion,” one resident said. “So Z$100 billion can’t do anything because for me to go home I need Z$250 billion, so this [note] is worthless.”

Zimbabwe was once one of the richest countries in Africa. A thought provoking article on the hyperinflationary collapse of the nation is in The Economist at A Worthless Currency