Imagine spending millions on a few goods. Zimbabwe is one of the world’s weakest currencies.
The Zimbabwean dollar became virtually useless as hyperinflation surpassed 5,000 percent, prompting its abolition in 2009. Since then, Zimbabwe has used more stable foreign currencies, such as the US dollar and the British pound, for daily transactions.
This transition was essential since the inflation rate reached an astounding 230,000,000 percent in 2009, compelling the central bank to establish the US dollar as the official currency. The iconic Z$100 trillion note, which was originally exchanged for only cents, has become a collector’s item, commanding greater prices online.
Zimbabwe’s economic woes are caused by mismanagement, political turmoil, and weak fiscal policies. These flaws have wrecked its economy, with excessive money creation significantly lowering the currency’s worth.
Furthermore, Zimbabwe’s reliance on imports worsens the issue, as demand for more stable foreign currencies devalues the Zimbabwean dollar.