Thursday, July 3, 2008

what can $25 billion buy (as of tuesday)?

What could you do with 25 billion dollars? Buy a loaf of bread if you use the local currency in Zimbabwe.

They have an inflation rate of over one million percent. Last week you needed 200 million Zimbabwean dollars (ZWD) to trade for one U.S. dollar (USD). On July 1st, you needed 25 billion ZWD to get one USD. In six days Zimbabwean money was worth 100 times less. Here, it would be like turning each of your dollars into a penny.

» Full Story in Newsweek

The German firm that has provided Zimbabwe the paper for currency since before independence has cut them off. It should be interesting to see what will happen if there is no paper to print money.

» Full Story in Wall Street Journal

Look on the bright side: Zimbabwe is a nation of billionaires.

Be blessed.

Note: Last year, on July 1st, I had another post about Zimbabwe's monetary problems. Then the inflation rate was under 4,000 percent and one USD exchanged for only 1.5 million ZWD.

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