Wednesday, July 30, 2008

A Billion Here...

Zimbabwe makes its millionaires disappear overnight:
Zimbabwe announced Wednesday that it is knocking 10 zeros off its hyper-inflated currency - a move that turns 10 billion dollars into one.

....Central Bank Gov. Gideon Gono announced he was dropping 10 zeros from Zimbabwe's currency, effective Friday. The move comes a week after the issue of a 100 billion-dollar note - still not enough to buy a loaf of bread.

Gono said the new money would be launched with 500-dollar bills. He also said he was reintroducing coins, which have been obsolete for years, and told people to dig out their old ones.

....Gono acted because the high rate of inflation was hampering the country's computer systems. Computers, electronic calculators and automated teller machines at Zimbabwe's banks cannot handle basic transactions in billions and trillions of dollars.

Inflation, the highest in the world, is officially running at 2.2 million percent in Zimbabwe but independent economists say it is closer to 12.5 million percent.

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