Zimbabwe Brings in New Currency to Tackle Inflation Crisis
Central bank governor says he is no longer prepared to print notes of ever higher denominations
People in Zimbabwe will tomorrow start to use a new currency introduced by the central bank to halt the African country's runaway increase in the cost of living.
Gideon Gono, the central bank governor, said he was no longer prepared to print notes of ever higher denominations. "Ten billion dollars today, will as from August 1 be revalued to one zimdollar dollar," he said earlier this week. The move follows an increase in Zimbabwean inflation to 2.2m%, and represents an attempt to get to grips with the economic crisis in what was once one of sub-Saharan Africa's richest countries. The $100bn note came into circulation only 10 days ago.
Gono's move follow the example of the president of the Reichsbank in the 1920s, Hjalmar Schacht, who helped end Weimar Germany's financial crisis by striking nine zeros from the currency and turning 10bn old marks into one new rentenmark.
Gideon Gono, the central bank governor, said he was no longer prepared to print notes of ever higher denominations. "Ten billion dollars today, will as from August 1 be revalued to one zimdollar dollar," he said earlier this week. The move follows an increase in Zimbabwean inflation to 2.2m%, and represents an attempt to get to grips with the economic crisis in what was once one of sub-Saharan Africa's richest countries. The $100bn note came into circulation only 10 days ago.
Gono's move follow the example of the president of the Reichsbank in the 1920s, Hjalmar Schacht, who helped end Weimar Germany's financial crisis by striking nine zeros from the currency and turning 10bn old marks into one new rentenmark.
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