Zimbabwean Currency

http://online.wsj.com/article/SB10001424052748703730804576314953091790360.html?mod=ITP_AHED

It is more than a stretch to include a post about Zimbabwe on a web site whose purpose is as stated at the above.  My apologies, however, I do so based on those Spanish speaking Sociedad Hispana followers, as well as the many Skype friends living in Spanish speaking countries who are learning English.

Brasil, Argentina(I still have $1 million Argentine peso notes), and other countries experienced inflation/devaluation cycles in prior decades.  For example, I know of  one major US corporation that actively sent financial executives to Brasil and Argentina for the sole purpose of learning how to manage finances in an inflationary economy.  My 5-6 years working actively in, or with these countries did not prepare me for what I saw happening Zimbabwe.

During our visit to Zimbabwe four years ago, we noted little on the shelves in pharmacies and food stores in Vic Falls, with long lines outside of the banks.   When we left the central bank was creating  $5 billion currency notes that wouldn't buy a loaf of bread.  Currency had an expiry date, which I have never seen on any currency.

We were greatly saddened by what we saw, but are encouraged to hear from a relative who recently visited the country, that perhaps there is a little relief since the country has adopted US$ as its currency.  This provides some discipline on the Zimbabwean central bank.  A relative of mine recently returned from Zimbabwe and it seems things are getting a little better.  There are no longer huge lines outside the bank in Vic Falls, and it seems merchandise is returning to store shelves.  It is also possible that without more extensive travel within Zimbabwe my initial conclusion might be wrong.

The article linked at here is from the Wall Street Journal, and discusses the Zimbabwean currency.