New Zimbabwe Notes Stir Memory of 500,000,000,000% Inflation
- Dollar-backed bond notes aimed at alleviating cash shortage
- Seen as return to Zimbabwean dollar abandoned in 2009
A one hundred trillion dollar Zimbabwe note issued in 2008.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Zimbabwe’s tentative return to its own currency is getting a hostile reception from citizens, who fear a recurrence of the 500 billion percent inflation that plagued the southern African nation before it abandoned its dollar seven years ago.
The country will soon introduce so-called bond notes, pegged to parity with the U.S. dollar and beginning with denominations worth from $2 to $5, central bank Governor John Mangudya said on Wednesday. It’s an attempt to complement the range of foreign currencies used in the beleaguered economy since 2009, which have been in short supply following a collapse in exports.