03 February,2009 07:50 AM IST | | Agencies
Zimbabwe slashed 12 zeros from its currency as hyperinflation continued to erode its value, the country's central bank announced yesterday.
"Even in the face of current economic and political challenges confronting the economy, the Zimbabwe dollar ought to and must remain the nation's currency, so as to safeguard our national identity and sovereignty," said Gideon Gono, governor of the Reserve Bank of Zimbabwe.
"Accordingly, therefore, this monetary policy statement unveils yet another necessary programme of revaluing our local currency, through the removal of 12 zeros with immediate effect."
The move means that 1 trillion in Zimbabwe dollars now will be equivalent to one Zimbabwe dollar.
The old notes -- with the highest being 100 trillion dollars -- not enough to buy a loaf of bread -- will remain valid until June 30, after which they will cease to be legal tender. One US dollar is trading above 300 trillion Zimbabwe dollars.
This third attempt to lop off zeros comes barely six months after the Zimbabwe government last adjusted its currency as it continues to lose value.
World-record inflation estimated to be in the billions of per cent -- but officially at 231 million per cent as of July last year -- has quickly eroded the currency's value again and again. The highest note on the new set is 500 Zimbabwe dollars.
