The country has printed 100 trillion notes, and 13 new ones have been removed

 The country has printed 100 trillion notes, and 13 new ones have been removed

This is a sample of the $10 and $20 face value of the NZB issued by the Reserve Bank of Zimbabwe (central bank) on May 15. Photo source: Xinhua social development

In 2009, after experiencing hyperinflation, Zimbabwe abandoned the Zimbabwean yuan, which was then its national currency, and adopted the US dollar, Japanese yen and RMB as its legal currency. In November 2019, the Central Bank of Tianjin issued the first batch of SGD, thus ending the situation that the country has no local currency for 10 years.

Zimbabwe will issue large denomination currency to alleviate cash shortage

Xinjin yuan, with a face value of 10 yuan, will enter the circulation field on 19 this month, and that of 20 yuan will start in early June, the statement said.

It is worth mentioning that the first Zimbabwean won was issued in 1980 when the country became independent, replacing the original rodesian won. At that time, one Jin Yuan was equivalent to $1.47. However, due to hyperinflation and devaluation, in 2006, the Central Bank of Tianjin had to remove three zeros from the face value of the original currency and issue the second generation of Jin Yuan. In August 2008, Tianjin Central Bank removed 10 zeros from the face value of Tianjin yuan and issued the third generation of Tianjin yuan. In February 2009, the Central Bank of Tianjin removed 12 zeros from the face value of the third generation of Tianjin dollar and issued the fourth generation of Tianjin dollar.

In 2009, the peoples Bank of Tianjin issued 100 trillion Jinyuan notes, becoming the most zero notes in the world. However, according to the official exchange rate at that time, 100 trillion Jin Yuan can only be exchanged for 40 cents. Source: Reserve Bank of Zimbabwe (public domain)

In Zimbabwe at the time, you can see locals pushing cars of money just to order food in the market or to buy toilet paper in the shops. According to the New York Times, eggs, vegetables, fruits and milk go up every hour, or even once in a few minutes at the extreme. As the local currency is not worth paper, local residents even sell their huge banknotes as souvenirs to foreign tourists, in exchange for more dollars than the face value of the currency.

Zimbabwe people push a cart of money to buy vegetables

In 2009, Zimbabwe abandoned its own currency, Zimbabwean dollar, after experiencing hyperinflation, and converted it into currency such as US dollar. Foreign currencies are in short supply in Zimbabwe for a long time due to the economic downturn and the deterioration of trade balance. Therefore, in November 2016, the Central Bank of Tianjin began to issue bond currencies equivalent to the US dollar (the so-called bond currency, in essence, is also a currency, but linked to the US dollar) to maintain market liquidity.

Since the second half of 2018, there has been a large gap between Zimbabwes official exchange rate of US dollar and bond currency and the black market exchange rate, resulting in a substantial rise in prices. In February last year, the Central Bank of Tianjin began to adjust the exchange rate of US dollar and bond currency through market means, and no longer locked the official exchange rate of the two currencies at 1:1.

On May 16, in Harare, the capital of Zimbabwe, people browsed and published newspapers with the face value of 10 yuan and 20 yuan. Photo source: Xinhua Social Development Bureau (Photo by Sean juza)

On June 24, 2019, the government of Tianjin signed a decree announcing that it will no longer allow the circulation of foreign currencies such as US dollars, and only allow the use of bond currencies issued by the country in Tianjin.

However, as the maximum face value of the first issue of SGD is only 5 yuan, the market cash shortage has not been alleviated in the case of high inflation.

The International Monetary Fund previously said that since the issuance of the New Zealand dollar, the devaluation has seriously affected the confidence of investors and the public, coupled with poor agricultural products and natural disasters and other factors, which led to the contraction of Zimbabwes economy last year 8.3% u3002

WFP: 4.3 million people in Zimbabwe face severe food shortage

According to Xinhua news agency, the U.N. World Food Program issued a statement on April 8 saying that 4.3 million Zimbabweans are facing severe food shortages due to extreme climate and the new crown epidemic. The organization plans to raise $130 million to provide food aid to the southern African country.

According to the world food program, Zimbabwes food production last year was only about 50% of that in 2018. Experts predict that this years harvest may be worse than last years. As Zimbabwes agricultural and water conservancy infrastructure is poor, the mechanization level is low, and the food harvest is basically dependent on the sky, the food security of Zimbabwe is also threatened more and more under the condition of more and more frequent extreme weather.

According to the agency, Zimbabwes hyperinflation has caused the price of basic food such as corn and wheat to rise sharply, which is beyond the capacity of most people. At the same time, the new crown epidemic has had a serious impact on Zimbabwes economy, aggravating the countrys food shortage crisis.