Zimbabwe’s New ‘Zombie Money’ Bank Notes May Resurrect Hyperinflation

Jon Economy, Government, Market Commentary

The southern African Republic of Zimbabwe knows all about currency crisis. In 2009, the country was forced to stop printing its own currency because inflation levels had grown to astronomical proportions. At its highest levels during 2008 and 2009, Zimbabwe’s inflation rate was estimated to have reached 79.6 billion percent. Eventually, the struggling republic was forced to abandon its own currency and cease the runaway hyperinflation. In turn, it adopted others like the South African rand, the euro, and the pound just to keep the economy functioning, according to Bloomberg.
Last week the Reserve Bank of Zimbabwe released a statement announcing the distribution of new dollar-backed bond notes to help with a currency shortage, which is creating a lag in payments to civil servants, military personnel, and employees of private businesses.

This post was published at Schiffgold on NOVEMBER 30, 2016.