Zimbabwean bank issues new notes

Submitted by Sam Cleary
This article covers the latest economic news from Zimbabwe.

The Zimbabwean central government has been forced to issue new higher denomination banknotes to deal with the hyperinflation that is crippling the country's economy.

The move comes after the government previously acted to knock 6 zeros off each note as banknotes had climbed into the several millions.

Zimbabwean citizens are currently facing inflation rates of 11.2 million %, compared to a rate in Hong Kong of 5%. Zimbabweans are limited to withdrawing an equivalent of $20 (USD) per day and queues form before the banks open as most of the cash runs out by 12pm!

Questions to think about

1. If you were first in the queue at 9am in the morning, and it took you 1 minute to leave the bank and go to the grocery store, how much would your maximum withdrawal of 20 USD be worth when you arrived at the store?
2. As a multinational business operating in Zimbabwe how would the hyperinflation affect your marketing strategy?