Zimbabwe says it will “demonetise” its currency from next week after its exchange rate hit 35 quadrillion, that’s 35,000,000,000,000,000 Zimbabwe dollars, against a single US dollar.

The Reserve Bank of Zimbabwe said its demonetising process would begin on 15 June, and is expected to be completed by 30 September.

The Reserve Bank of Zimbabwe governor John Mangudya said: “Demonetisation is necessary whenever there is a change of national currency. The old unit of currency must be retired or decommissioned”.

“Demonetisation is not compensation for the loss of value of the Z$ due to hyperinflation. It is an exchange process.”

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The country has been heavily hit by hyperinflation since 2008, with inflation skyrocketing to 231 million percent in 2008 according to official figures, although analysts put the figure in the billions.

The government officially ditched the local currency in 2009, with the country using mainly US dollars, South African rands, and Botswana pula.

The RBZ said that for bank account holders, banks will pay the equivalent US$ amount for each account balance as at 31 December 2008, converted as follows:

Accounts with balances of Zero to Z$175 quadrillion will be paid a flat US$5.

Accounts with balances above Z$175 quadrillion will be paid the equivalent value after applying the UN exchange rate of US$1/Z$35 quadrillion or US$1/Z$35,000 (revalued).

The RBZ said banks will exchange ZW$ cash for US$ equivalents for walk-in cash customers at an exchange rate of Z$250 trillion to US$1 for the 2008 note series and Z$250 to US$1 for the 2009 note series.

“Cash customers will get their exact US$ equivalent of the converted amount, starting from US1 cent up to US$50. Where the US$ equivalence exceeds US$50, payment will be made through their respective bank accounts.”

“Corporate customers’ US$ equivalent will be credited into their respective bank accounts,” the reserve bank said.

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