It is worth noting that in the hyperinflation at the beginning of this century, the government of Zimbabwe has printed the worlds largest currency with a face value of 100 trillion so far. It has been dubbed as the only currency in the world that can compete with Tiandi bank.
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
The Reserve Bank of Zimbabwe (central bank) will issue 10 yuan and 20 yuan worth of new Zimbabwe babwe to increase market liquidity and ease the cash shortage, Xinhua said in a statement Friday.
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.
For Zimbabweans at that time, the most important thing was money. All the people were trillion rich. Compared with that in 1980, the currency value of Tianjin yuan in 2008 is almost 0, which is only one part of that in 1980! (2 times the 35th power of 10) and the money is not enough to buy a loaf.
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.
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 issuance of bond currencies, Zimbabwe has been facing a cash shortage problem. In November last year, the Central Bank of Tianjin issued the first batch of SGD, thus ending the 10-year absence of local currency in the country. The governor of the Reserve Bank of Zimbabwe said that after the New Zealand dollar has fully entered the circulation field, it will gradually replace the bond currency as the only currency in circulation in Zimbabwe.
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 its own country in Tianjin.
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
It is worth noting that Zimbabwe used to be known as African granary, but hyperinflation and recent new epidemic situation are pushing it to a food shortage crisis.
In a statement, the World Food Administration said that affected by extreme weather such as drought and flood in southern Africa, hyperinflation caused by Zimbabwes economic recession, and the global new crown epidemic, 7.7 million people in Zimbabwe are in a state of food insecurity, and the number of people facing severe food shortages rose to 4.3 million from 3.8 million at the end of last year. Without emergency assistance to the people concerned, they will be in a deeper predicament.
Street View of Harare, Zimbabwe
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.