January 19, 2009

It is a $100 Trillion note for Zimbabwe

There is a real sign of hyperinflation and that is when the central banks start issuing high denomination bank notes. We have been following this in Zimbabwe where the president, Robert Mugabe has found his country virtually cut off from the outside.

The central bank has had to introduce the highest denomination bank note ever recorded in the world in order to cope with the out of control inflation. The Z$100 trillion note is one such note that is only worth around £22, so it is clear how much this amount is really worth.

There is no end in sight for the Zimbabwe government in fact thing will no doubt get a lot worse with the central bank struggling to cope to out of control inflation. In the mean time, it is the ordinary of the country who suffer, as per normal.

Source [Telegraph]