February 2, 2009
As inflation continues to spiral out of control in Zimbabwe, the country's central bank Monday chopped off 12 zeroes from the national currency to make transacting more convenient. This is the second time in less than six months that the country has had to remove zeroes from the Zimbabwe dollar.
In August last year, the central bank cut off nine zeroes from the dollar, and introduced a series of new smaller denomination bank notes.
But the new notes soon lost value as inflation, estimated at more than a trillion percent, soared unabated.
Only two weeks ago, the central bank introduced new Z$10 trillion, Z$50 trillion and Z$100 trillion in an effort to easy financial transactions.
But the central bank on Monday said it was re-valuing the local currency again, and chopped off 12 zeroes, with the highest denomination bank note now Z$500.
Bank Governor Gideon Gono said that the currency reforms would come into effect immediately, accompanied by new bank notes.
"As monetary authorities, we fully understand that while our country's national anthem, national flag and territorial integrity are fundamental political pillars of our sovereighty, these are complemented by our national currency," he said.
Posted by Nutmegcollector at 12:34 PM