Zimbabwean dollar

Infobox Currency
image_1 = 1 Zimbabwe Dollar 2008.jpg
image_title_1 = The new (third) $1, equivalent to 10,000,000,000 second dollars.
iso_code = ZWD
using_countries = Zimbabwe
inflation_rate = 231,000,000% ("official, July 08")
2,000,000,000,000 % ("HHIZ, Oct 08")
inflation_source_date = [ http://news.bbc.co.uk/2/hi/business/7569894.stm ] [ http://cato.org/zimbabwe ]
subunit_ratio_1 = 1/100
subunit_name_1 = cent
symbol = $
used_coins = 1¢, 5¢, 10¢, 20¢, 50¢, $1, $2, $5, $10, $25
used_banknotes = $1, $5, $10, $20, $100, $500, $1000, $10 000, $20 000
banknote_article = Paper money of the Zimbabwean dollar
issuing_authority = Reserve Bank of Zimbabwe
issuing_authority_website = www.rbz.co.zwThe dollar is the currency of Zimbabwe. It is subdivided into 100 cents. It is normally abbreviated with the dollar sign "$", or alternatively "Z$" to distinguish it from other dollar-denominated currencies.

History

First dollar

The first Zimbabwean dollar was introduced in 1980 and replaced the Rhodesian dollar at par. The initial ISO 4217 code was "ZWD". At the time of its introduction, the Zimbabwean dollar was worth more than the U.S. dollar, with ZWD 1 = USD 1.47. However, the currency's value eroded rapidly over the years. On 26 July 2006, the parallel market value of the Zimbabwean dollar fell to one million to the British pound. [Gumbo, Joseph. [http://www.zimbabwesituation.com/jul28a_2006.html Bills Put Zimbabwe Under "Martial Law"] . "Institute for War and Peace". The Zimbabwe Situation. 2006-07-27.]

econd dollar

In October 2005, the head of the Reserve Bank of Zimbabwe, Dr. Gideon Gono, announced "Zimbabwe will have a new currency next year." New banknotes and coins were to replace the then current Zimbabwean dollar. Gono did not provide a name for this new currency. In June 2006, Deputy Finance Minister David Chapfika stated that Zimbabwe had to achieve macroeconomic stability (i.e., double digit inflation) before any new currency was introduced.

The dollar was redenominated on 1 August 2006 at the rate of 1 revalued dollar = 1,000 old dollars. The new dollar is subdivided into 100 cents, although cents are not used in practice. Together with the redenomination, the government devalued the dollar by 60 percent vs. the US dollar (see exchange rate history table below), from 101,000 old dollars (101 revalued) to 250 revalued dollars. ISO originally assigned a new currency code of "ZWN" to this redenominated currency, but the Reserve Bank of Zimbabwe could not deal with a currency change. Therefore the currency code remains 'ZWD'. [ [http://www.telekurs-financial.com/dl_tkfich_customers_data_sources_exchanges_080906.pdf Currency reform Zimbabwe] (pdf). "Telekurs Financial". 2006-08-09.]

The revaluation campaign, which Gideon Gono named "Operation Sunrise" was completed on 21 August 2006. It was estimated that some ten trillion old Zimbabwe dollars (22% of the money supply) were not redeemed during this period. [Ndlela, Dumisani. [http://www.zimbabwesituation.com/sep15b_2006.html#Z17 78% old currency returned: RBZ] . "Zimbabwe Independent". The Zimbabwe Situation. 2006-09-15.]

On 12 December 2006, Dr. Gono hinted in a memorandum to banks and other financial institutions that he would lay out the next phase of his monetary reforms dubbed Project Sunrise Two when he announced the monetary policy review statement in January 2007. It was not possible to get immediate confirmation from Gono's office whether the memorandum was advice to banks that he would be launching the new currency in January. But the chief executive officer of one of the country's largest banks said industry players had understood the governor's memo to mean new money would be introduced next month. [ [http://www.zimbabwesituation.com/dec14_2006.html#Z1 Harare expected to unveil new currency next month] . "Zim Online". 2006-12-14.] A possible name appeared to be "ivhu", which means "soil" in Shona. [Rusere, Patience. [http://www.voanews.com/english/Africa/2006-12-14-voa62.cfm Some Expect New Currency From Zimbabwe Central Bank In 2007] . "Voice of America". 2006-12-14.]

On 2 February 2007, it was revealed that a new (third) dollar would be released "soon" and gave some details of the new banknotes (see below). However, given that inflation remains in four digits, these banknotes are likely to remain in storage for the foreseeable future.

In February 2007, the central bank of Zimbabwe declared inflation "illegal", outlawing any raise in prices on certain commodities between 1 March and 30 June 2007. Officials have arrested executives of some Zimbabwean companies for increasing prices on their products. Economists generally suspect that such measures will be ineffective at eliminating the problem in the long term. [Wines, Michael. [http://www.nytimes.com/2007/02/07/world/africa/07zimbabwe.html?ex=1328504400&en=5709ec03b6b62b0d&ei=5090&partner=rssuserland&emc=rss As Inflation Soars, Zimbabwe Economy Plunges] . "The New York Times". 2007-02-07.] [ [http://news.bbc.co.uk/2/hi/africa/6199516.stm Zimbabwe jail over bread prices] . "BBC News". 2006-12-01.] On 15 June 2007, economist Eddie Cross reported that "There is talk that the Reserve Bank will cut another three zeros off our currency next week and this would mean that one Zimbabwe dollar would now equal one million of the "old" dollars. Chaos reigns in commerce and industry and those in the public sector are frantic." [ [http://www.zimbabwesituation.com/jun16a_2007.html#Z6 Eddie Cross] . "The Zimbabwe Situation". 2007-06-15.]

On 6 September 2007 the Zimbabwe dollar was devalued by 92% [cite web |url=http://www.bloomberg.com/apps/news?pid=20601039&sid=a8KzciD2HkYk&refer=columnist_wilson |title=S&P's Sub-$10 Club, Lexmark's `Buy,' Zimbabwe's Dollar: Timshel |accessdate=2008-09-16 |publisher=Bloomberg |date=2007-09-07] , to give an official exchange rate of ZW$30,000 to US$1, although the black market exchange rate was estimated to be ZW$600,000 to US$1. [Raath, Jan. [http://www.timesonline.co.uk/tol/news/world/africa/article2403119.ece Devaluation is 'too little, too late' to save Zimbabwe] . "Times Online". 2007-09-07.]

Meanwhile the WM/Reuters company introduced a notional exchange rate (ISO ZWD) which more accurately reflected black market exchange rates. Since there was a shortage of foreign exchange in the country the official rate was nearly impossible to obtain. The method of calculation was based on Purchasing Power Parity utilizing the dual listing of companies on the Harare (ZH) and London Stock exchanges (LN).Fact|date=July 2008

Inflation

Rampant inflation and the collapse of the economy have severely devalued the currency, with many organizations using the US dollar, the euro, the pound sterling, or the South African rand instead. Early in the 21st century, Zimbabwe started to experience hyperinflation. Inflation reached 624% in early 2004, then fell back to low triple digits before surging to 1,281.1% in December 2006. [cite news |url=http://www.mg.co.za/article/2006-03-10-inflation-hits-a-record-high-in-zimbabwe |publisher=Mail & Guardian Online |date=2006-03-10 |title=Inflation hits a record high in Zimbabwe |quote=Inflation in Zimbabwe reached its previous peak in January 2004, hitting 624%. |accessdate=2008-08-27] [cite news |url=http://news.bbc.co.uk/2/hi/business/6248245.stm |publisher=BBC News |title=Zimbabwean inflation hits 1,281% |date=2007-01-10 |accessdate=2008-08-27]

Inflation reached another record high of 3714% (year-on-year) in April 2007. [Shaw, Angus. [http://www.zimbabwesituation.com/may18_2007.html#Z1 Inflation in Zimbabwe surges to record 3,714 percent, the highest in the world ] . "Associated Press". The Zimbabwe Situation. 2007-05-17.] The monthly rate for April 2007 exceeded 100%, implying that inflation may soon exceed all forecasts, as 100% monthly inflation over sustained 12 months would produce annual inflation of over 400,000%. Mid-year inflation for 2007 has been breaching records as inflation for May 2007 was estimated at 4,530% (year-on-year). [Zulu, Blessing. [http://www.zimbabwesituation.com/jun13a_2007.html#Z1 Zimbabwe Inflation Data Delayed Again; Estimate Points To 4,530%] . "Voice of America". The Zimbabwe Situation. 2007-06-12.]

On 21 June 2007, the United States ambassador to Zimbabwe, Christopher Dell, told "The Guardian" newspaper that inflation could reach 1.5 million percent by the end of the year. The unofficial inflation rate at that time was above 11,000%, and the black-market exchange rate was Z$400,000 to the pound. [Meldrum, Andrew. [http://www.guardian.co.uk/zimbabwe/article/0,,2108910,00.html US predicts regime change in Zimbabwe as hyperinflation destroys the economy] . "The Guardian". 2007-06-22.] On 13 July 2007, the Zimbabwean government said it had temporarily stopped publishing (official) inflation figures, a move that observers said was meant to draw attention away from "runaway inflation which has come to symbolise the country's unprecedented economic meltdown." [Chizhanje, Hendricks. [http://www.zimbabwesituation.com/jul15_2007.html#Z1 Harare suspends release of inflation data] . "Zimbabwe Online". The Zimbabwe Situation. 2007-07-14.]

On 27 July 2007, the Consumer Council of Zimbabwe (CCZ) said its recent calculations for the monthly expenditure for an urban family of six showed that inflation for the month of June was more than 13,000%. The Central Statistical Office (CSO), the official source of Consumer Price Index numbers, had not released its figures since February (2007) when it reported annual inflation at 1,729%. [Nyakazeya, Paul. [http://www.zimbabwesituation.com/jul27a_2007.html#Z6 June inflation 13 000%: CCZ] . "The Zimbabwe Independent". The Zimbabwe Situation. 2007-07-27.]

In September 2007, the Central Statistical Office announced an official inflation rate of 6,592.8% for August 2007. [Banya, Nelson; Dzirutwe, MacDonald. [http://www.zimbabwesituation.com/sep19_2007.html#Z2 Zimbabwe inflation slows amid warning of collapse] . "Reuters". The Zimbabwe Situation. 2007-09-18.] Private estimates were as high as 20,000%. [McGreal, Chris. [http://www.guardian.co.uk/zimbabwe/article/0,,2127297,00.html Mugabe's price cuts bring cheap TVs today, new crisis tomorrow] . "The Guardian". 2007-07-16.] In October 2007, they announced an official inflation rate of 7,892.1% for September 2007. [ [http://www.zimbabwesituation.com/oct18_2007.html#Z1 Zimbabwe inflation surges to 7,892 percent] . "Yahoo News". The Zimbabwe Situation. 2007-10-17.] In November 2007, they announced an official inflation rate of 14,840.5% for October 2007. [Nyakazeya, Paul. [http://www.zimbabwesituation.com/nov16b_2007.html#Z14 $1m note on the way as cash crisis worsens] . "Zimbabwe Independent". The Zimbabwe Situation. 2007-10-16.]

Hyperinflation

On 27 November 2007, the chief statistician of the Central Statistical Office, Moffat Nyoni, announced that it would be impossible to calculate the inflation rate of the dollar any further. This was due to the lack of availability of basic goods, and subsequent lack of information from which to calculate the inflation rate; plus, most computers had an insufficient number of digits and software. The International Monetary Fund has stated that inflation is predicted to rise to 100,000% per annum. [ [http://news.bbc.co.uk/1/hi/world/africa/7115651.stm Zimbabwe inflation 'incalculable'] . "BBC News". 2007-11-27.]

On 14 February 2008, the Central Statistical Office announced that the inflation rate for December 2007 was 66,212.3%, and the unofficial exchange rate was Z$7.1 million to the US$1. [ [http://news.bbc.co.uk/1/hi/business/7244769.stm Zimbabwe inflation spirals again] . "BBC News". 2008-02-14.]

On 20 February 2008, the Central Statistical Office said that officially, inflation has in January 2008 gone past the 100,000% mark to 100,580.2%. [ [http://www.zimbabwesituation.com/feb21_2008.html#Z1 Zimbabwe annual inflation over 100,000 per cent] . "Sydney Morning Herald". The Zimbabwe Situation. 2008-02-21.]

On 4 April 2008, the "Financial Gazette" (FinGaz) reported that officially, inflation in February 2008 jumped to 164,900.3%. [ [http://www.zimbabwesituation.com/apr4_2008.html#Z22 Inflation surges to 165 000%] . "Financial Gazette". The Zimbabwe Situation. 2008-04-04.] On 15 May 2008, the "Zimbabwe Independent" reported that officially, inflation in March 2008 jumped to 355,000%. [ [http://www.zimbabwesituation.com/may17_2008.html#Z1 Inflation Hits 355 000%] . "Zimbabwe Independent". The Zimbabwe Situation. 2008-05-15.]

On 21 May 2008, SW Radio Africa reported that, according to an independent financial assessment inflation in May 2008 jumped to 1,063,572.6%. The state statistical service has said there are not enough goods in the shortage-stricken shops to calculate any new (official) figures. [ [http://www.zimbabwesituation.com/may24a_2008.html#Z26 Inflation hits one million percent as prices continue to skyrocket] . "SW Radio Africa". The Zimbabwe Situation. 2008-05-21.]

On 26 June 2008, the "Zimbabwe Independent" reported that, latest figures from the Central Statistical Offices (CSO) showed that annual inflation rose by 7,336,000 percentage points to 9,030,000% by June 20 and was set to end the month at well above 10,500,000%. [ [http://www.zimbabwesituation.com/jun27c_2008.html#Z16 Inflation gallops ahead: 9000 000%] . "Zimbabwe Independent". The Zimbabwe Situation. 2008-06-26.]

The Sydney Morning Herald reported that inflation was likely to be two million percent in May 2008 and ten to fifteen million percent in June 2008, according to John Robertson, a respected Zimbabwean economist.McGreal, Chris. [http://www.smh.com.au/news/world/zimbabwes-accelerating-inflation-rate-reaches-the-millions/2008/07/17/1216163059603.html Zimbabwe's accelerating inflation rate reaches the millions] . "The Sydney Morning Herald". 2008-07-18. Retrieved 2008-07-22.] Robertson estimated inflation in July 2008 to be forty to fifty million percent. Inflation can only be estimated because of the impossibility of following the cost of individual goods.

According to Central Statistical Office statistics, annual inflation rate rose to 231 million percent in July 2008. The month-on-month rate rose to 2,600.2%. [ [http://www.zimbabwesituation.com/oct9b_2008.html#Z1 Inflation soars to 231 million percent] ]

Money supply (2006–2008)

On 16 February 2006, the governor of the Reserve Bank of Zimbabwe, Gideon Gono, announced that the government had printed ZW$20.5 trillion in order to buy foreign currency to pay off IMF arrears. [Meldurm, Andrew. [http://www.guardian.co.uk/zimbabwe/article/0,,1714393,00.html Africa needs more courage, says Mugabe] . "The Guardian". 2006-02-21.] In early May 2006, Zimbabwe's government announced that they would produce another ZW$60 trillion. [ [http://www.parapundit.com/archives/003427.html Zimbabwe Inflation Over 900 Percent] . "ParaPundit". 2006-05-04.] The additional currency was required to finance the recent 300% salary increase for soldiers and policemen and 200% increase for other civil servants. The money was not budgeted for the current fiscal year, and the government did not say where it would come from. On 29 May, Reserve Bank officials told IRIN that plans to print about ZW$60 trillion (about US$592.9 million at official rates) were briefly delayed after the government failed to secure foreign currency to buy ink and special paper for printing money.

In late August 2006, it was reported that about ZW$10 trillion old dollars (22% of the money supply) had "not" been exchanged for revalued dollars. These bearer cheques were demonetized. On 27 June 2007, it was announced that central bank governor Gideon Gono had been ordered by President Robert Mugabe to print an additional ZWD$1 trillion to cater for civil servants' and soldiers' salaries that were hiked by 600% and 900% respectively. [ [http://www.zimbabwesituation.com/jun28_2007.html#Z18 Zimbabwe: Gono ordered to print Z$1 Trillion for Civil servants and Army] . "Zimbabwe Daily News". The Zimbabwe Situation. 2007-06-28.]

On 28 July 2007, it was reported that Mugabe has said that Zimbabwe will go on printing money if there is not enough for underfunded municipal projects. [ [http://www.zimbabwesituation.com/jul29_2007.html#Z1 Mugabe says will print more money if there isn't enough] . "Associated Press". International Herald Tribune. The Zimbabwe Situation. 2007-07-28.]

On 30 August 2007, it was reported that an additional ZW$3 trillion had been printed to pay for 500,000 scotch carts and 800,000 ox-drawn ploughs plus an unspecified number of cattle. [ [http://www.zimbabwesituation.com/aug30b_2007.html#Z13 RBZ provides $3 trillion for vote buying] . "The Zimbabwean". The Zimbabwe Situation. 2007-08-30.]

On 3 September 2007, it was reported that that the black market in Zimbabwe is once again booming despite price controls. People who previously were employed for a paltry US$11 (ZW$2 Million) a month are now able to turn as much as US$166 (ZW$30 Million) just through black market trading. [Dixon, Robyn. [http://www.latimes.com/news/nationworld/world/la-fg-blackmarket3sep03,1,3218553.story?track=rss#Z14 He can get it for you fast] . "Los Angeles Times". 2007-09-03.]

On 24 November 2007, it was reported that money supply was now $58 trillion revalued Zimbabwean dollars (ZWD) [ [http://www.zimbabwesituation.com/nov24_2007.html#Z2 Of cash and dealers] . "IRIN". The Zimbabwe Situation. 2007-11-24.] ($41 million US at parallel rates). However, Zimbabwe banks could only account for $1 to $2 trillion of those dollars, meaning that members of the public were holding $56 to $57 trillion in cash.

On 4 January 2008, it was reported that money supply had been increased by $33 trillion (to $100 trillion) [ [http://www.zimbabwesituation.com/jan4b_2008.html#Z11 Cash crisis: No end in sight] . "The Financial Gazette". The Zimbabwe Situation. 2008-01-04.] revalued Zimbabwean dollars (ZWD) [Ndlela, Dumisani. [http://www.zimbabwesituation.com/jan4b_2008.html ZANU-PF split looms] . "The Financial Gazette". The Zimbabwe Situation. 2008-01-04.] Further, the demonetization of the $200,000 bearer cheques was put on hold, thus increasing the money supply.

The planned issue of additional banknotes (denominations of ZWD 1, 5, and 10 Million) on 18 January 2008 will increase the money supply by an unknown amount.

On 21 January 2008, it was reported, by Gideon Gono, that the money supply had been increased to ZW$170 trillion since the middle of December. Further, Gono expected it to reach $800 trillion by 28 January 2008. [ [http://www.zimbabwesituation.com/jan22_2008.html#Z3 Zimbabwe central bank blames banks for banknote shortage] . "Reuters". The Zimbabwe Situation. 2008-01-22.]

On 1 March 2008, it was reported that documents obtained by "The Sunday Times" show the Munich company Giesecke & Devrient (G&D) was receiving more than €500,000 (£382,000) a week for delivering bank notes at the astonishing rate of Z$170 trillion a week.

"The regime is surviving by printing money," said Martin Rupiya, professor of war and security studies at the University of Zimbabwe. "At this stage there is no other way."

According to a source at the Reserve Bank of Zimbabwe, G&D was delivering 432,000 sheets of banknotes every week to Fidelity printers in Harare, where they were stamped with the denomination. Each sheet contains 40 notes and the current production is entirely in Z$10M notes. [Lamb, Christina. [http://www.zimbabwesituation.com/mar2a_2008.html#Z1 Planeloads of cash prop up Mugabe] . "The Sunday Times". The Zimbabwe Situation. 2008-03-02.] On July 1, 2008, Giesecke & Devrient decided they would no longer print bank notes for Zimbabwe, bowing to pressure from the German government. [ [http://www.gi-de.com/portal/page?_pageid=44,147931&_dad=portal&_schema=PORTAL Giesecke & Devrient halts deliveries to the Reserve Bank of Zimbabwe] . "Giesecke & Devrient GmbH, Prinzregentenstr". 2008-07-01.] [ [http://www.reuters.com/article/pressRelease/idUS194545+01-Jul-2008+PRN20080701 Giesecke & Devrient Halts Deliveries to the Reserve Bank of Zimbabwe] . "Giesecke & Devrient". PRNewswire. Press release.]

In the Guardian, on 18 July 2008, a report on Zimbabwe's inflation, said that an egg costs ZW$50 billion (GBP 0.17, USD 0.32), and it showed adverts for prizes of Z$100 trillion in a Zimbabwean derby and ZW$1.2 quadrillion ($1,200,000,000,000,000.00: ~GBP 2,100; USD 4,200) in a lottery. It also showed a monthly war pension currently is ZW$109 billion (GBP 0.37, USD 0.74), shops can only cash cheques if the customer writes double the amount, because the cost will go up by the time the cheque has cleared, and people can only withdraw a maximum of ZW$100 billion from cashpoints. [McGreal, Chris. [http://www.guardian.co.uk/world/2008/jul/18/zimbabwe What comes after a trillion?] "The Guardian". 2008-07-18.]

On 23 July 2008, an Austro-Hungarian company based in Vienna confirmed that it is providing the Reserve Bank of Zimbabwe with the licences and software required to design and print Zimbabwe currency.Howden, Daniel; Armitage, Tom. [http://www.independent.co.uk/news/world/africa/firm-with-licence-to-print-mugabes-money-875785.html Firm with licence to print Mugabe's money] . "The Independent". 2008-07-24.] [http://www.monstersandcritics.com/news/africa/news/article_1419212.php/Austrian_company_helps_Zimbabwe_bank_produce_near-worthless_money Austrian company helps Zimbabwe bank produce near-worthless money] . "Deutsche Presse-Agentur". 2008-07-24.] The company, named Jura JSP, said it would consider ending its supply of licences and software if the European Union required it to do so. Without the licences and software, the Reserve Bank of Zimbabwe may be unable to print notes in larger denominations than are already in circulation.

On 24 July 2008, the Reserve Bank of Zimbabwe announced that "appropriate measures are being put in place to address the current setbacks being faced on the currency front, as well as on financial and accounting systems."Banya, Nelson. [http://africa.reuters.com/business/news/usnBAN459366.html Zimbabwe central bank promises currency reforms] . "Reuters". 2008-07-24.] It promised that in "the next few days" it would institute changes to the minimum cash withdrawal limits and IT systems' constraints. Currently, the government limits cash withdrawals to ZW$100 billion per day, which is less than the cost of a loaf of bread. IT systems cannot handle such large numbers; the automated teller machines for one major bank give a "data overflow error" and freeze customers attempt to withdraw money with so many zeros. [ [http://www.news.com.au/heraldsun/story/0,21985,24074952-5012751,00.html $100 billion for three eggs] . "The Herald Sun". 2008-07-25.] That same day, the Institute of Commercial Management reported that ZW$1.2 trillion is worth the same as one British pound. [Woods, Susanna. [http://news.icm.ac.uk/business/12-trillion-zimbabwe-dollars-for-1/584/ 1.2 trillion Zimbabwe dollars for £1] . "Institute of Commercial Management". 2008-07-24.]

Third dollar

On July 30, 2008, Gono announced that the Zimbabwean dollar would be redenominated.Shaw, Angus. [http://ap.google.com/article/ALeqM5i4kT7pJlnuzY_vpKdTACcQYIPcvQD9286J480 Zimbabwe devalues currency; 10B becomes 1 dollar] . "Associated Press". Google News. 2008-07-30. Retrieved 2008-07-30.] Effective August 1, 2008, ZW$10 billion would be worth ZW$1. The planned denominations to be issued are coins valued Z$5, Z$10 and Z$25 and banknotes worth Z$5, Z$10, Z$20, Z$100 and Z$500. [Mafaro, Wayne. [http://www.zimonline.co.za/Article.aspx?ArticleId=3487 Mugabe says might declare state of emergency over prices] . "ZimOnline". 2008-07-30. Retrieved 2008-07-30.] While the German firm of Giesecke & Devrient is no longer printing Zimbabwean currency, "The Daily Telegraph" reported that the new currency was printed before the relationship was severed and has been kept in storage since then. [Berger, Sebastien; Thornycroft, Peta. [http://www.telegraph.co.uk/news/worldnews/africaandindianocean/zimbabwe/2475081/Zimbabwe-to-cut-ten-zeros-from-banknotes-in-fight-against-inflation.html Zimbabwe to cut ten zeros from banknotes in fight against inflation] . "The Daily Telegraph". 2008-07-30. Retrieved 2008-07-30.]

On September 13 because of cash shortages and worthless Zimbabwean currency, foreign currency was legalised as a de facto currency. [ [http://www.telegraph.co.uk/news/worldnews/africaandindianocean/zimbabwe/2778562/Final-humiliation-for-Zimbabwe-dollar-as-foreign-currency-legalised.html] 2008-09-13]

Second dollar

Restoration of market data feeds

In the final months before Zimbabwe's central bank reforms of April 30, 2008, virtually all popular currency conversion resources relied upon the official rate of 30,000 ZWD to 1 USD for published figures, in spite of the vast differences between that and free market rates. By May 23, 2008, Bloomberg [ [http://www.bloomberg.com/markets/currencies/eurafr_currencies.html World Currencies: Europe/Africa/Middle East] . "Bloomberg L.P."] and Oanda [ [http://www.oanda.com/convert/classic FXConverter - Currency Converter for 164 Currencies] . "Oanda.com". Oanda Corporation.] began publishing floating rates based on Zimbabwe's formally regulated domestic bank market, while Yahoo Finance started using the updated official rate in July, albeit with a decimal point shift of 6 places. Those floating rates may still differ substantially from less regulated markets such as offshore markets or paper cash freely traded on the streets of Harare. The primary drivers of that distortion may be cash shortages [ [http://en.afrik.com/article13510.html Foreign Exchange rates skyrocket in Zimbabwe] . "Panapress". Afrik.com. 2008-05-08.] or the various limits on state sanctioned forex transactions, which for private parties, must be handled via transfer instead of in cash for values beyond $150 USD. [Moyo, Lawrence. [http://allafrica.com/stories/200805120669.html Zimbabwe: Foreign Currency Liberalisation] . "allAfrica.com". 2008-05-12.]

Third dollar

On August 1, 2008, ten zeroes were removed from the currency, reducing 10 billion Zimbabwean dollars to one dollar. [ [http://africa.reuters.com/wire/news/usnBAN034008.html] . "Reuters". 2008-07-30.] On October 3, 2008, the Reserve Bank of Zimbabwe suspended the Real Time Gross Settlement (RTGS) system, halting electronic parallel market transfers [ [http://allafrica.com/stories/200810060058.html] ."Zimbabwe Independent".2008-10-02] .

ee also

* Banknotes of the Cargill Cotton Group (Zimbabwe)
* Banknotes of the Reserve Bank of Zimbabwe
* Least valued currency unit
* Economy of Zimbabwe
* Redenomination
* Hyperinflation

References

*numis cite SCWC|date=1991
*numis cite SCWPM|date=1994

External links

Standard numismatics external links
world_coin_gallery_1_url = Zimbabwe
world_coin_gallery_1_name = Zimbabwe
world_coin_gallery_1_anchor = Zimbabwe
banknote_world_1_url = zimbabwe
banknote_world_1_name = Zimbabwe
dollarization_1_url = zw
dollarization_1_name = Zimbabwe
gfd_1_url = Zimbabwe
gfd_1_name = Zimbabwe
gfd_data_1_url =
gfd_data_1_name =
show_gfd_excel = Y
* [http://www.garrysue.net/Zim/5bilagro08.htm Scan of Reserve Bank of Zimbabwe $5,000,000,000 Special Agro Cheque] .

News

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* [http://www.zimdollar.co.zw/ Zimdollar]
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* cite web | author=zimbabwesituation.com | date=2006-11-17 | url=http://www.zimbabwesituation.com/nov17_2006.html#Z12 | title=Murerwa wins on devaluation | accessdate=2006-11-17
* cite web | author=zimbabwesituation.com | date=2006-11-29 | url=http://www.zimbabwesituation.com/nov29_2006.html#Z2 | title=Zimdollar takes heavy knock on black market | accessdate=2006-11-29
* cite web | author=zimbabwesituation.com | date=2007-06-22 | url=http://www.zimbabwesituation.com/jun22a_2007.html#Z1 | title=Zimbabwe currency crashes; inflation as high as 9,000% | accessdate=2007-06-22
* [http://news.bbc.co.uk/2/hi/business/6924062.stm Zimbabwe launches $200,000 note] Retrieved on 1-08-2007.
* [http://news.bbc.co.uk/2/hi/business/6959164.stm Zimbabwe inflation hits new high (Depicts the front of the $200,000 Bearer Cheque)] Retrieved on 25-08-2007.