[DEBATE] : Zimbabwe: Now, the $10 Million Bill

[Mike Davies]

Zimbabwe has the widest range of currency in the world:

21 Bearer cheques:
$10 000 000, $5 000 000 , $1 000 000, $750 000, $500 000, $250 000, 
$200 000, $100 000, $50 000, $10 000, $5 000, $1 000, $500, $100
$50, $10, $1, 50c, 10c, 5c, 1c

The biggest bank note is $1 (the old $1000 note) which is still in
circulation for some reason. Of course, anything under the $100 000 is
utterly worthless since a loaf of bread is 1,2 million (today). The 'spread'
between the largest and smallest bearer cheques is 1 billion. 

To illustrate the ludicrous nature of our economics, the new 10 million
dollar bearer cheque is worth US$333 officially but US3.33 on the free
market. This differential is a primary resource for patronage by the regime
as chefs can access foreign currency at the official rate and immediately
get a return of 10 000%.

When the 1 cent bearer cheque was issued in August 2006, it was completely
worthless. A printer in South Africa estimated that it would cost 0.37 rand
to print each note. It took me three weeks and visits to about 15 banks to
get a few! A real collector's item!



-----Original Message-----
From: Sean Jacobs [mailto:tintinyana at gmail.com] 
Sent: Friday, January 18, 2008 6:06 PM
To: debate at lists.kabissa.org
Subject: [DEBATE] : Zimbabwe: Now, the $10 Million Bill

January 18, 2008
World Briefing | Africa
Zimbabwe: Now, the $10 Million Bill
By THE ASSOCIATED PRESS
The government of President Robert G. Mugabe, battered by
hyperinflation, said it would begin issuing new currency beginning
Friday: $1 million, $5 million and $10 million notes. The highest
existing note, introduced just last month, is $750,000. The new $10
million note is the equivalent of about $4 in American currency at the
black market exchange rate used by most Zimbabweans. A hamburger at an
ordinary cafe costs about $15 million in Zimbabwe money, or $6
American. Cash has dried up and long lines have become a feature at
banks and A.T.M.'s.


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