Home : Statistics of the Month : Price of a bottle of beer in Zimbabwe
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Zimbabwe inflation
- Prices are changing fast!
So much that the price of a bottle of beer changes on its way from the shelf to the cash register.
Of course, at current exchange rates it would take roughly 5 hours for its price to increase by the equivalent of 1¢ US$ (15,000 Z$).
- A beer at US$2 ... or US$100
The price of a bottle of beer in Zimbabwe costs the equivalent of US$ 2 (at black market exchange rates) compared to US$ 100 when exchanging currency at the official rate.
Zimbabwe produces alcohol beverages locally, so a bottle of beer is a common and easily comparable item for the purpose of this counter.
- 150,000% inflation rate
The International Monetary Fund (IMF) has estimated inflation in Zimbabwe to have hit a yearly rate of 150,000% in January 2008.
- Hyperinflation
This is the same inflation rate reached by Germany during the Weimar Republic in the 1920s in the post-First World War era. Thirteen countries have experienced hyperinflation since 1950. Average duration of hyperinflation is 17 months, the longest is 59 months which was experienced by Nicaragua.
- "Last time we removed three zeroes. But they've returned"
"Now we are determined not to allow them to return" has said Dr. G. Gono, Governor of the Reserve Bank of Zimbabwe adding that "some have said we are in a hyperinflationary environment and can therefore not bring in a new currency. Nothing could be further from the truth." In a November 2007 statement annoucing the launch of operation " Sunrise 2" (a currency changeover plan that took effect in December 2007), Dr. Gono attributed the monetary crisis to the "dark forces of parallel market trading and financial disintermediation. It has become more than evident that, left to their own whims, the blossoming cash barons, smugglers and other illicit dealers will threaten the stability of our National Payment Systems." and concluded "Fellow Zimbabweans, time has come that we say no to selfdestruction of our economy by a few bad apples among us whilst the rest watch. As Monetary Authorities, we say NO to this callous path, and hereby declare total war against the illegal dealers who are causing havoc in our markets." [full text PDF] .
- Zimbabwe issues 10 Million Dollar Note
A suitcase full of cash will no longer be required when buying groceries (at least for the moment):
on January 18, 2008 Zimbabwe’s central bank issued three new higher denomination banknotes, Z$ 1 million, Z$ 5 million and Z$ 10 million bank notes that will hold tender until July 2008. The latest banknotes come hardly a month after the RBZ unveiled three other bearer cheques, a Z$ 250,000, a Z$ 500,000 and Z$ 750,000 bills.
- Cash withdrawals and ATM machines
Daily cash withdrawals limits have been increased by Zimbabwe’s central bank as of January 18, 2008 from Z$ 50million to Z$ 500 million per individual. Cash machines in the past months were useless because it took 3 or 4 customers' withdrawals to empty them completely.
- Zimbabwe's Currency
Zimbabwe's currency is the Zim, or Zimbabwe Dollar, or Z$. The official symbol is ZWD
- Exchange rates
On the black market: 1US$ = 1,500,000 Z$ (as of January 31, 2008)
Official exchange rate: 1US$ = 30,000 Z$
(as of January 31, 2008; find out current official ZWD rate)
Important note: These exchange rates change constantly in a dramatic way (the first one in particular), so any printed exchange rate you find here or elsewhere will be grossly inaccurate (they would need another real time counter...)
References and useful links:
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