Friday, July 25, 2008

100 Billion Dollars

What would you do if you have 100bn Dollars?
"I will buy a loaf of bread"
Surprised? or does it look stupid?
Well it is not if you are in Zimbabwe.

Zimbabwe Govt. has recently introduced a Z$100bn note in response to surprising 2,200,000% inflation. It must be noted over here that Zimbabwe had introduced a Z$10mn note early this year and then Z$50mn three months after that.
Although the number 100billion in itself looks huge but the amount is meagerly enough to buy a loaf of bread or to travel a few kilometers. As per a statement quoted on BBC News, the amount is less than one fifth of what is required to meet daily expenses.

Amongst so many surprises, it really is not very surprising to note that the worth of Z$100bn is just a few US Dollars!

Well actually all this reminds me of the "MoneyKumar" comic strip released by Reserve Bank of India to spread basic awareness about the money market dynamics and how adjusting various factors could impact economy in positive or negative manner. Zimbabwe once used to be one of the richest states in Africa but the condition today is terrible (with inflation figure in 7 digits).
I dont know why it happened and why their monetary and fiscal regulatory bodies could not handle it. I will try to explore that and then may be another post will be dedicated to the unbelievable stunt by Zimbabwaen economy.

Note: News link at BBC

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