by Tim Price, Sovereign Man:
Today marks the end of the most notorious example of fiscal insanity in modern times.
The Reserve Bank of Zimbabwe today begins a process to “demonetise” its now irrelevant currency, the Zimbabwe dollar. Between now and September 30, Zim dollars can be exchanged for the US variety.
Holders of Zim dollars should not get too excited. As the FT reports, accounts “with balances of zero to Z$175 quadrillion will be paid a flat US$5”.
As the proud owner of a Z$100 trillion note, I may not take up this generous offer. A Z$100 trillion note has far more comic potential even than a US$5 replacement.
The Central Statistics Office of Zimbabwe stopped publishing estimates of price rises in 2008, when inflation was rising at an annual 231 million percent.
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