2 hours agoThe State Where Money Has No Value
Periskopi(8 years ago)
(8 years ago)Have you ever thought that to buy a bread to him they're looking for a sack of money? Strangely enough, this is true since 2008 in the African state of Zimbabwe. It's been almost seven years, when Zimbabwe was hit by hyperinflation, where local Zim-dollori currency was so depreciated that people had to [...]
It's been almost seven years, when Zimbabwe was hit by hyperinflation, where local currency Zim-doller was so depreciated that people had to go to the store with the bags of cash to collect the necessary products.
Even though it seems the worst has passed, Zimbabwe's dollar continues to decline, although no longer 500 billion percent depreciate as in 2008.
According to “Bloomberg”, during this period in the country foreign coins have been used massively, from US dollar, South African randy, Chinese loan to Japanese.
Meanwhile, the country's central bank has announced that the domestic dollar will be replaced in the market with the US dollar.
The reform is estimated to end hyperinflation and to get the weak domestic economy on track, but also to eliminate the famous cut of 100 local dollars from circulation.
The local financial institute has made estimates and, in total, all the Zimbabwean money in circulation will buy about $20m.
According to one study, it turns out that every second you earn Zimbabwe's $1, after 79 years the saved value didn't exceed an American dollar.
