We all thought an inflation rate of 2.2m% was crazy, but today we have been shocked again. Zimbabwe’s annual inflation rate soared to 11.2 million percent in June, state media reported on Tuesday quoting figures from the central statistical agency. It gained 9 035 045.5 percentage points from the May rate of 2 233 713.4 percent. And yet again, these figures can not be very accurate and are probably understated. Is there really any point in continuing to calculate the rate of inflation in Zimbabwe? I think not. An inflation rate of 11.2m% just does not make much sense and it is really difficult for someone with no experience of the Zimbabwe economy to understand what such a high inflation rate means. Read the rest of this entry »

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. Read the rest of this entry »

As the economy continues to fall in Zimbabwe, the Reserve Bank in the country looks sets to take off some more zeros from the local currency. Just last week, a new $100 billion note was released to help ease the current cash shortages in Zimbabwe. Currently, one person is allowed to withdraw a maximum of $100 billion a day. Now looking at it in real terms, the value of that $100 billion note is approximately worth R10.

A couple of years ago, three zero’s were slashed off the Zimbabwe currency and it looks set that a few more are going to be taken off shortly with some asking for as many as nine zeros to be taken off. Zimbabweans had gotten used to dealing in trillions and billions. Some did not even know that a term called quadrillion existed, but that is what you can expect to hear now if you want to buy a house in Zimbabwe. Read the rest of this entry »

When some had thought things could not get any worse in Zimbabwe, a new Z$100bn note is set to be released on Monday (21 July). With inflation already at 2.2m% in the country, adding a higher denomination note is just going to push that rate of inflation even higher. With increasing cash shortages in Zimbabwe, the move to release the new note is seen as a way to try help ease the cash shortage. For many years now, the Zimbabwe government has been printing hoards of notes to try keep the economy afloat but at the same time the continual printing of the cash has led to hyperinflation in the country.

In January, a 10-million-dollar note was issued, then a 50-million-dollar note in April. In May, notes for 100 million and 250 million dollars were issued, swiftly followed by those for five billion, 25 billion and 50 billion. Now with the 100 billion note in circulation, do not be surprised to see a 500 billion note very soon.

As the woes continue in Zimbabwe, the central bank’s governor in Zimbabwe, Gideon Gono said today, “Statistics provided by the CSO (central statistical office) indicate that it is now at 2.2 (million percent).” This referring to the rate of inflation in the country. This is clearly the highest rate of inflation in the world. And this figure released of 2.2m% can not be totally accurate with many suggesting that the rate of inflation is actually much higher than this. The last official announcement about the rate of inflation was in February this year when it was said that inflation was 165 000%.

It is still anyone guess how they can actually still be able to calculate the rate of inflation in Zimbabwe with the way things our going in their economy. An inflation rate of 2.2m% really does not make sense to anyone who is not in Zimbabwe and maybe even for those in the country. If someone tells you that a cold drink is 20 billion dollars, one can not comprehend what the actual value is unless you convert it back into rands or US dollars.

OAO Gazprom, Russia’s state- sponsored gas monopoly, is offering to buy all of Libya’s oil and gas exports in a bid to increase its dominance over Europe’s gas market and enhance Russia’s political clout throughout the region.

Alexei Miller, Gazprom’s chief executive, made the offer on July 9th at a meeting with Libya’s head of state, Muammer Gaddafi.

“Libya positively evaluated Gazprom’s proposition to buy all future volumes of gas, oil, and [liquefied natural gas] designed for export at market price,” Gazprom said in a statement after the meeting. Read the rest of this entry »

According to a report on Fin24 yesterday; The manufacturer of Zimbabwe’s banknote paper will not supply any more notes to the country. This comes off the bank of pressure from the international community to force a change in Zimbabwe. Zimbabwe’s bank note paper was supplied by a German company called Giesecke & Devrient GmbH. The German government has asked the paper manufacturer to stop supplying Zimbabwe with the paper as a way of imposing sanctions on the country. This move will surely add more pressure on the Zimbabwe government as there will be no form of cash in the country. There is already a serious cash crisis in Zimbabwe and this move by the Germans will not ease the crisis in any way. The Zimbabwe government will have to look for another paper supplier and do it quickly as the German company has stop supplying with immediate effect.