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Zimbabwe Demonetizes: Offers US$5 Per 175 Quadrillion Zim Dollars

Tyler Durden's picture




 

It's over! Starting June 15th and ending September 30th, the Zimbabwe Central bank will begin its process of "demonetization" of the old Zimbabwe Dollar. The Zimbabwe dollar will be removed as legal tender after the currency’s use was abandoned in 2009 following a surge in inflation to 500 billion percent. For bank accounts containing up to 175 quadrillion Zimbabwe dollars they will be paid $5, the country’s central bank said. The people remain angry slamming this as "abusing one's rights in the banking system," and claiming this is being done to enrich a chosen few.

  • *ZIMBABWE'S CENTRAL BANK SAYS `DEMONETISATION IS A NECESSITY'
  • *ZIMBABWE SAYS DEMONETISATION `CRITICAL FOR POLICY CONSISTENCY'

As Bloomberg reports,

The Zimbabwe dollar will be removed as legal tender after the currency’s use was abandoned in 2009  following a surge in inflation to 500 billion percent.

 

For bank accounts containing up to 175 quadrillion Zimbabwe dollars they will be paid $5, the country’s central bank said.

 

A program of seizing white-owned commercial farms for redsistribution to black subsistence farmers that began in 2000 slashed exports and triggered an almost 10-year recession. The economy is half the size it was in 2000, according to government statistics.

 

The country now uses currencies including the U.S. dollar and the South African rand.

*  *  *

As The Standard reports, Zimbabwe's Central banker was clear,

Central bank governor John Mangudya has clarified that $5 is the minimum that will be paid to each individual bank account holder as compensation for the Zimdollars people lost when the country switched to the current multi-currency regime in 2009.

 

Mangudya told The Standard that the full amount people will be compensated for their losses were being worked out using the United Nations exchange rate.

 

"If we used the UN rate for all accounts some accounts will get zero but we are saying the minimum that everyone will get from the Zimbabwe dollar accounts is $5," he said.

 

"The maximum that one gets will be determined by the UN rate as well. Demonetisation is not compensation for inflation. Some people are expecting the central bank to compensate for the ills of inflation. That is not the role of government and no one in the world has been compensated for the ills of inflation."

 

Mangudya said the central bank was seeing demonetisation as the burying of the local currency.

*  *  *

People are not happy...

"Giving out US$5 does not even show sincerity to correcting an abuse of one's rights in this banking system -- most have described it as a mockery. What is worse, most are already suspecting money set aside for this as a scheme to enrich themselves considering how opaque the whole thing has been."
 

 

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Thu, 06/11/2015 - 11:51 | 6186513 CPL
CPL's picture

Someday it'll reach parity.  At least that seems to be the 'plan'.

Thu, 06/11/2015 - 11:50 | 6186515 Irishcyclist
Irishcyclist's picture

And to think that like Ukraine, Zimbabwe was once known as the bread basket of it's region.

 

How far that country has fallen. And a beautiful country it is too.

Thu, 06/11/2015 - 11:53 | 6186530 CPL
CPL's picture

It's still beautiful and does the kid look worried to anyone?

Thu, 06/11/2015 - 12:08 | 6186596 pods
pods's picture

That's cause the photographer offered the kid a buck to take his picture.

pods

Thu, 06/11/2015 - 11:51 | 6186517 aliki
aliki's picture

kelly evans yesterday on the closing bell:

"if you kick the can down the road long enough, maybe nothing bad ever happens (followed by her best hamptons out on a boat voice) HA-HA-HA!"

Thu, 06/11/2015 - 11:53 | 6186538 aliki
aliki's picture

oh, and someone needs to tell that kid in the picture that the deeds to park place & boardwalk just fell outta his pocket

Thu, 06/11/2015 - 12:01 | 6186572 NoDebt
NoDebt's picture

There's a phrase for that:  whistling past the graveyard.

Thu, 06/11/2015 - 13:08 | 6186866 A_latvian
A_latvian's picture

Sounded more like Phil Ken Sebben.

https://www.youtube.com/watch?v=F8ID1KJQxB8

Thu, 06/11/2015 - 11:51 | 6186518 bpj
bpj's picture

Cue the song "Who'se Squeezing Charmin Now".

Thu, 06/11/2015 - 11:51 | 6186519 firstdivision
firstdivision's picture

Coming to an America near you.

Thu, 06/11/2015 - 11:53 | 6186537 NoVa
NoVa's picture

Give Oblamo $5 and send him there as a quadzillionaire

Thu, 06/11/2015 - 11:51 | 6186523 Trick Shroadé
Thu, 06/11/2015 - 12:07 | 6186595 agstacks
agstacks's picture

me too, but I think I paid less than a quarter 3-4 years ago.  They're selling for $25 now? nice 100 bagger. Should have bought more, lol. 

Thu, 06/11/2015 - 11:51 | 6186524 fasTTcar
fasTTcar's picture

As my avatar states, welcome to Zimbabwe.

Thu, 06/11/2015 - 11:52 | 6186527 franciscopendergrass
franciscopendergrass's picture

I hope they got recycling places in Zimbabwe, because thats a whole lotta paper.  Either that they will have a shit ton of toilet paper

Thu, 06/11/2015 - 12:06 | 6186590 newdoobie
newdoobie's picture

some cat in Venuzuela with $5 bucks can go into the butt wipe business! quadrillions of wipes for just 5 bucks

Thu, 06/11/2015 - 11:52 | 6186528 NoVa
NoVa's picture

DEMON itized by a Central bank failure.  Could not have used a more perfect word!

 

Thu, 06/11/2015 - 11:54 | 6186532 JustObserving
JustObserving's picture

How can you complain?  $5 will buy you a cup of coffee at Starbucks

All my wealth for a cup of coffee that sucks.

Thu, 06/11/2015 - 11:56 | 6186553 Dubaibanker
Dubaibanker's picture

You mean all of one's life savings are just equal to a cup of coffee at Starbucks? ;)

Can I buy you one? But you will have to drink it. Can't re-sell and become a billionaire in Zimbabwe! :)

Thu, 06/11/2015 - 11:53 | 6186533 This is it
This is it's picture

Soon, it will be parity with USD.

Thu, 06/11/2015 - 11:54 | 6186539 Atomizer
Atomizer's picture

Go long on wheelbarrow manufacturers. Segway vehicles can outrun the mules. 

Thu, 06/11/2015 - 14:23 | 6187158 Pseudonymous
Pseudonymous's picture

Talk about front running and HFT.

Thu, 06/11/2015 - 11:56 | 6186552 The Delicate Genius
The Delicate Genius's picture

Well, Zimbabwe still has the best democracy money can buy...

http://forward.com/opinion/israel/181670/robert-mugabes-made-in-israel-l...

Thu, 06/11/2015 - 11:58 | 6186559 Totentänzerlied
Totentänzerlied's picture

"The people remain angry slamming this as "abusing one's rights in the banking system,""

WRONG.

Those deposits were unsecured, non-collateralized, non-recourse loans from depositor to deposit-holder. You got conned.

Now watch as Zimbabweans like all others others before them continue patronizing their banks and learn nothing.

Thu, 06/11/2015 - 12:02 | 6186574 Seasmoke
Seasmoke's picture

I will give them $6. And flip on eBay for $20.

Thu, 06/11/2015 - 12:03 | 6186580 gaoptimize
gaoptimize's picture

PM me if you get the bills to sell on ebay.

Thu, 06/11/2015 - 12:04 | 6186577 gaoptimize
gaoptimize's picture

How much is shipping on 175 quadrillion Z-dollars from Zimbabwe?  If it is less than $20, I'll pay twice the central bank rate ($10) to have a physical souvenir of hyper-inflation to show friends, family, and co-workers.

Thu, 06/11/2015 - 12:03 | 6186579 Seasmoke
Seasmoke's picture

This is a semi serious question. If someone has a 1 quadrillion mortgage. Can't they just pay it off today for $5usd ????

Thu, 06/11/2015 - 12:04 | 6186581 p00k1e
p00k1e's picture

"abusing one's rights in the banking system,"

Yesterday my local news revealed the county I live in – Wayne County MI, home of Detroit - is slapping  ‘a one-time tax assessment to satisfy a court judgment in a pension case’ of $50.00 each.

They blew the money and are compelling us to pay for their mistakes.  

 

That's an example of Tax Abuse to go along with the Banking Abuse. 

Thu, 06/11/2015 - 12:06 | 6186582 astoriajoe
astoriajoe's picture

I'd like to buy some so I can send it to the next politician (Democrat or Republican) the next time they ask me for a donation.

Thu, 06/11/2015 - 12:06 | 6186589 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Some people are expecting the central bank to compensate for the ills of inflation.

Some people are expecting the central bank to take responsibility for the inflation it creates. 

Thu, 06/11/2015 - 12:07 | 6186592 Banker Buster
Banker Buster's picture

This is good, lets follow their example.  Their economy must be BOOMING with that type of inflation!

The kids there must be great at counting to count to a quadrillion.  

Thu, 06/11/2015 - 12:08 | 6186597 agstacks
agstacks's picture

.

Thu, 06/11/2015 - 12:10 | 6186603 bigfire
bigfire's picture

I still have that 100 Trillion Zimbabwe Dollar bill in my tablet's jacket.  You can buy them from Amazon.

Thu, 06/11/2015 - 12:11 | 6186606 Blopper
Blopper's picture

"...no one in the world has been compensated for the ills of inflation."

 

What is the source of such ills? The Rothschilds.

All your ills are their gains.

Thu, 06/11/2015 - 12:11 | 6186608 The Delicate Genius
The Delicate Genius's picture

So who will be buying up Zimbabwe's national wealth for pennies on the dollar?

China's already there, I'm sure. Does the US have troops there, too, trying to box the Chinese out?

http://www.usnews.com/opinion/economic-intelligence/2015/03/24/china-bea...

Not that I'm a cynic, mind you, but a sudden surge in urban protests in that lush, horribly mismanaged country would not be surprising.

order from chaos, as it were...

Thu, 06/11/2015 - 12:32 | 6186687 Atomizer
Atomizer's picture

Pull together IQ and why fast track and TPP is not being reported to the public. 

Thu, 06/11/2015 - 12:13 | 6186614 Atomizer
Atomizer's picture

Special Drawing Rights. Follow the money. 

http://coinmill.com/SDR_calculator.html

Mrs Atomizer is now in Taiwan. She went throughout our diversified collection of currency. As of yesterday, 1 dollar = 31.08 TWD. 

Her grandmother is dying. She'll be back soon. Learn about currency laundering. 

Thu, 06/11/2015 - 12:14 | 6186618 kchrisc
kchrisc's picture

175 Quadrillion worthless fiats for 5 worthless fiats.

Liberty is a demand. Tyranny is submission..

 

Give Zion an inch, and they'll print the other 63359.

Thu, 06/11/2015 - 12:15 | 6186620 taketheredpill
taketheredpill's picture

 

 

The real problem was so many suffocation deathe after people bought the "Money Gun".

http://www.themoney-gun.com/

 

 

Thu, 06/11/2015 - 12:20 | 6186636 Gold N Glocks
Gold N Glocks's picture

If obama had a country...wait, what?

Thu, 06/11/2015 - 12:25 | 6186651 Falconsixone
Falconsixone's picture

Now pay your bills with that $5 and your broke. Get back to work money slaves. Ain't it great! Welcome to the matrix you've been dreaming of! Americans are so lucky! I can't wait!

Thu, 06/11/2015 - 13:19 | 6186904 silverer
silverer's picture

It's a very good deal on tinder... oh, wait... I mean tender.

Thu, 06/11/2015 - 12:33 | 6186680 rejected
rejected's picture

Not near as sad as Detroit...

 

The public will pay nearly 60 percent of the cost of the proposed $450 million Detroit Red Wings arena in downtown Detroit under a plan disclosed Wednesday.

Property taxes would pay for $261.5 million (58 percent) of the building's construction cost while the team's ownership would provide $188.4 million (42 percent), according to details provided by the state.

Those are July 2013 dollars based on bonds with a 5.91 percent interest rate.

 

Almost the first thing they did after exiting Bankruptcy and screwing so many out of pensions many, even here on ZH, said they did not deserve.

Soooo, the pensioners don't deserve their pension but the city can use the 'legally stolen funds' to build a much needed stadium.

 

Doesn't matter whether it's Zimbabwe or America. The banksters, politicians and corporate oligarchs are robbing everyone literally out of house and home.

And we let them...

 

Thu, 06/11/2015 - 13:16 | 6186897 silverer
silverer's picture

I'm told sales of Preparation H are very high in Detroit...

Thu, 06/11/2015 - 13:21 | 6186911 graftvshost
graftvshost's picture

I'd send them my share of the tax burden in Zim dollars...

 

 

Thu, 06/11/2015 - 12:35 | 6186699 replaceme
replaceme's picture

I worked a data warehouse when this currency melted down, had to change all the currency fields to handle the new numbers - had never seen numbers like that before, felt like I was working with distances to stars.  Good times.

Thu, 06/11/2015 - 12:42 | 6186739 Falconsixone
Falconsixone's picture

How far is the Dollar star system from whatever that bright things name is here in the local sky?

Thu, 06/11/2015 - 13:15 | 6186892 silverer
silverer's picture

Introducing the new "Parsec" bill...

Thu, 06/11/2015 - 12:36 | 6186704 Falconsixone
Falconsixone's picture

Fat stacks just like the guys on the corner of 4th st. America.

Thu, 06/11/2015 - 12:49 | 6186780 Jethro
Jethro's picture

Meh. At least the Zimbabwean government is up front about it. The US government? Not so much....

Thu, 06/11/2015 - 12:57 | 6186806 asfffasfff
asfffasfff's picture

what a waste    children in africa could have eaten this paper

Thu, 06/11/2015 - 13:22 | 6186914 bluskyes
bluskyes's picture

Make michael obama-o's out of it

Thu, 06/11/2015 - 12:59 | 6186825 bluskyes
bluskyes's picture

So how much is my 100 Trillion Zimbabwe Dollar bill worth?

Thu, 06/11/2015 - 13:14 | 6186890 silverer
silverer's picture

Would cost you more in postage to send it back.

Thu, 06/11/2015 - 13:05 | 6186848 Mitch Comestein
Mitch Comestein's picture

You mean I can get a minimum of $5 for my 100 trillon Zim bill I have.........Sweet!.  I just need to go to Zimbabwe and chaim.  Wait...should I be concerned about safety?

Thu, 06/11/2015 - 13:21 | 6186909 silverer
silverer's picture

BZZZZZT! Oh, we're sorry, we said QUADRILLION...

Thu, 06/11/2015 - 13:07 | 6186863 disarray1
disarray1's picture

if even the zimbabweans aren't eating the bankers, then humanity really is manageable (as long as they are fed)

Thu, 06/11/2015 - 13:12 | 6186883 mastersnark
mastersnark's picture

Or internet. In developed countries, as long as there is internet, there is peace.

Thu, 06/11/2015 - 13:10 | 6186878 Gold N Glocks
Gold N Glocks's picture

So one Zim dollar has more intrinsic worth than obama and the wookie!

Thu, 06/11/2015 - 13:19 | 6186905 matinee55
matinee55's picture

don't ya just just the ponzi fiat scheme.  Faith baby, faith!

Thu, 06/11/2015 - 23:18 | 6188910 talisman
talisman's picture

Faith baby, faith!
Nahhh....the line is:
"Full Faith and Credit"

Thu, 06/11/2015 - 13:20 | 6186908 shitco.in
Thu, 06/11/2015 - 13:37 | 6186980 homiegot
homiegot's picture

Genius. Pure genius.

Thu, 06/11/2015 - 13:59 | 6187064 NoWayJose
NoWayJose's picture

A de-monetizing thought popped into my head this morning regarding the mighty US Penny - the venerable Lincoln Cent. When combined with the push to electronic 'money' for all transactions, I can see our own gubmint declaring that pennies are no longer legal tender. (The Brits did this to the 'hey-penny' not that long ago. To help move the masses to electronic money, this would require all cash transactions to round to the next highest nickel -- but electronic money would still count to the penny. Thus the gubmint creates a reason to go electronic, and removes the need to produce the nasty little penny that costs more than 1 cent to make!

Thu, 06/11/2015 - 14:17 | 6187134 IBelieveInMagic
IBelieveInMagic's picture

Man, these Zimbabewans must be geniuses in math by now - imagine adding these large numbers!

Thu, 06/11/2015 - 14:21 | 6187153 Arthur Schopenhauer
Arthur Schopenhauer's picture

Zimbabwe's economy fell into a hyperinflationary spell under the leadership of dictator Robert Mugabe, who has been the country's President since 1987. Mugabe's economic policy sent the Zimbabwean economy into a tailspin as he implemented price controls and printed endless amounts of money. He was quoted as saying, "Where money for projects has not been found, we will print it."

Thu, 06/11/2015 - 15:01 | 6187295 Black Warrior W...
Black Warrior Waterdog's picture

Freaking sad.

Thu, 06/11/2015 - 15:28 | 6187414 Undutchable73
Undutchable73's picture

the white men has a history of being kicked out of African colonies, e.g. Angola and Mozambique ~1975.

The result that follows, however, is usually the same.

Thu, 06/11/2015 - 17:33 | 6187958 Billyfx
Billyfx's picture

Mugabe used their banknotes as toilet paper. Now the entire country does. 

Thu, 06/11/2015 - 23:15 | 6188905 talisman
talisman's picture

How many Zimbabwe dollars will US account holders receive
when US demonitizes the US dollar??

Fri, 06/12/2015 - 00:35 | 6189073 onmail
onmail's picture

This is what Satan America and its pirate western countries do to the poor nations.

Thats why we need protection .

Thats why we need BRICS , AIIB and nuclear weapons to defend against western vampires and against cabalBanksters.

Poor nations should leave UN which is a puppet of America, an instrument for exploitation.

Kick the dollar out.

The BRICS can be a new role model. Instead of Dollar, let Africa use Rand, South America use Real, Asia should use Yuan & Rupee and Europe etc should start using Rouble for trade within and outside the block.

All poor nations of the world , come to BRICS we will give you rest

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