Zimbabwe’s $100 trillion banknote is worth about 50 Canadian cents

There are several currencies – the British pound; U.S. dollar; South African rand; Indian rupee; Japanese yen; and Chinese yuan, among others – being used in Zimbabwe in an attempt to mitigate the country’s hyperinflation woes.

CNN reports since 2009, Zimbabwe has opted to use other currencies in lieu of its own, which it abandoned after hyperinflation exceeded 5,000 per cent. The system has led to a deflation rate of -2.3 per cent, according to Zimbabwe Reserve Bank Governor John Mangudya.

“We changed to a multiple currency system to stabilize, and inflation went down to zero per cent, and it was magic,” Mangudya told CCN.

Zimbabwe previously circulated a $100-trillion banknote, which – along with other hyper-inflated denominations such as $10-trillion bills and $1-trillion bills – was exchangeable for USD until this month (although it was only worth about $0.40 USD, or $0.50 Cdn.).

When inflation hit 230 million per cent in 2009, Zimbabwe’s reserve bank – noted for its inability to contain its country’s hyperinflation – declared USD its official currency. It remains the preferred currency, although other currencies are accepted.

“We are saying that since you can import/export goods from South Africa, you can use the rand. If you are importing from China you can use the yuan. The USD is our reserve currency,” Mangudya told CCN.

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