The chaos in the Zimbabwe economy took another turn today. Zimbabwe will redenominate the dollar by removing 10 zeros from August 1, central bank Governor Gideon Gono said today (30 July). The Zimbabwe dollar will be redenominated by a factor of one to 10, which means they are removing ten zeros from the monetary value. This means that Ten billion (Zimbabwean) dollars today will be reduced to one dollar with effect from August 1. The new currency will co-circulate together with the family of bearer cheques … which shall cease to be legal tender on the 31st of December 2008.

Last time it was three zeros, this time ten, so how many will they remove next time? Simply dropping the zeros will in no way improve the Zimbabwe economy nor the skyrocketing inflation currently at 2.2m%. The dropping on the zeros will simply make calculations as bit easier as people and computer systems were starting to struggle handling all the zeros from the billions and trillions.

The true value of the Zimbabwe currency will still remain worthless against the major international currencies. Zimbabweans had become trillionaires and quadrillionaires over night but now with the slashing of the zeros, it will be another long road to becoming a millionaire again in Zimbabwe. But if things remain the way they are, it will not be surprising to hear that in a few months time, even less 10 zeros, there will be millionaires again in Zimbabwe.

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