2008-07-28
Hyperinflation in Zimbabwe
Some people all over the world are panicky over high inflation in their respective country and we are worried that the paycheck we are receiving is not enough for our day to day expenses. But we must be thankful that we do not live in Zimbabwe. I am not saying that it is a bad country. What I am driving at is that the inflation in their country is increasing rapidly.
Check out the graph below, the exchange rate of Zimbabwe Dollar against the Euro staggered from May to June of the same year.
The bank note below is the highest denomination note ever released in any country.
Here in Manila, people can buy 3 eggs for Php12.00. Look at the photo below and see how many eggs could a 100billion Zimbabwe dollars buy.
The government of Zimbabwe is even having hard time looking for papers to print their money. They are struggling to find enough cash also to pay its workers, and more importantly the military, after it was forced to severely cut back on printing money because sanctions severed its supply of banknote paper from Europe.Paper money was already in desperately short supply because the state-run Fidelity Printers Refiners in Harare was unable to keep up with the demand created by hyperinflation and rapid devaluation that had caused notes to lose almost their entire value within weeks of being issued.
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