Facts About Zimbabwe Fifty Trillion Dollar Bill

Facts about Zimbabwe Fifty Trillion Dollar Bill. The Zimbabwean dollar Z$ is used to distinguish between other dollar denominated currencies. This currency was used between 1980 and 2009. In this time period there were periods above average inflation and hyperinflation. Over time the Z$ was reduced to the lowest valued currency unit in the world. Proofed by the following note.

Imagine if there was a 1:1 exchange with the U.S $ as well as the Z$.

Debt in the US could be completely wiped out twice with this single bill. Don’t just take my word for it, you can check the national debt clock. As of this posting the current US debt is at 20,498,341,685,895.

History of the Zimbabwe Dollar

The first Z$ was introduced in 1980. This replaced the Rhodesian dollar at par, at 1:1. At the time of it’s introduction the Z$ was worth more than the U.S dollar on the official exchange market. The exchange value was Z$=1.47USD. It’s value eroded rapidly throughout the years as you can see.

The first re-denomination occurred in October 2005. The head of the Reserve Bank of Zimbabwe announced that there would be a new currency the following year. However in the following year it was decided that Zimbabwe first had to achieve macro-economic stability.

Many economists believe that hyperinflation is caused by large persistent government deficits. Furthermore these are financed primarily by money creation. Rather than borrowing or increasing taxation they just print more money to finance projects. Hyperinflation is often related to stressed government budgets.

Some instances include:

– Financing wars or their aftermath.

– Or Sociopolitical upheavals.

– Also a collapse in export prices.

– Other crises that make it difficult for the government to collect revenue.

Any of these instances can cause hyperinflation, and as a result of that Zimbabwe fell into this trap.

Looking at the above graph you can see how quickly the Reserve Bank of Zimbabwe lost control of its currency value. Furthermore it really makes you wonder. What would happen if this occurred in the United States.

If you like this fact you should check out our Money Category!

Sharing is caring!

Like this: Like Loading...

Comments

comments