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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CPL's picture

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

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.

CPL's picture

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

pods's picture

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

pods

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!"

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

NoDebt's picture

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

bpj's picture

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

firstdivision's picture

Coming to an America near you.

NoVa's picture

Give Oblamo $5 and send him there as a quadzillionaire

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. 

fasTTcar's picture

As my avatar states, welcome to Zimbabwe.

chinoslims'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

newdoobie's picture

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

NoVa's picture

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

 

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.

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! :)

This is it's picture

Soon, it will be parity with USD.

Atomizer's picture

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

Pseudonymous's picture

Talk about front running and HFT.

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.

Seasmoke's picture

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

gaoptimize's picture

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

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.

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 ????

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. 

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.

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. 

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.  

bigfire's picture

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

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.

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...

Atomizer's picture

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

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. 

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.

taketheredpill's picture

 

 

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

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

 

 

Gold N Glocks's picture

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

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!

silverer's picture

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

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...

 

silverer's picture

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

graftvshost's picture

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

 

 

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.

Falconsixone's picture

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

silverer's picture

Introducing the new "Parsec" bill...

Falconsixone's picture

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