A special story is connected with the money of Zimbabwe, since until recently the national currency was used here, but because of the phenomenally high depreciation, it had to be abandoned. Today, the US dollar is the official monetary unit in the country.
Short story
The emergence of the national currency in the country is associated with its independence from Britain. It happened in 1980, it became one of the last countries in Africa to receive sovereignty.
It was then that the history of Zimbabwean national money began. Initially, the first coins were issued, issued back in 1980. Then, the following year, the first banknotes appeared.
However, the Zimbabwean dollar did not last long. Already in 2009, the state had to abandon the use of national money. The government abandoned them in favor of the American dollar.
Description
Zimbabwean money had an international designation consisting of the letter code ZWL. The symbol of the currency was a sign identical to the American dollar, but the letter Z (Z $) was added in front of it.
It consisted of one Zimbabwean dollar of 100 cents. The history of this currency is quite interesting because it is unprecedented. By the time it was withdrawn from circulation, it was the cheapest monetary unit in the world.
Denominations
It is worth noting that during the existence of this currency there were several versions of the dollar of this country.
The First Dollar (ZWD) lasted the longest: from the moment the country was liberated until 2006, when it was replaced by the Second Dollar (ZWN). The second option did not exist for long and already in 2008 it was replaced by the "third" (ZWR) at the rate of 1 in 10 million.
The "third" option was used even less. Already in February 2009 in Zimbabwe, money at the rate of 1 to a trillion was again denominated. However, regular denominations did not save the situation, and in April 2009 there was a ban on the use of national money as a means of payment.
From this moment, the US dollar, the British pound and the currencies of neighboring countries began to be applied in the country. Subsequently, the US dollar took the lead and continues to be used in the country as the main currency.
Coins
Initially in circulation were metal coins with a face value of one, five, ten, twenty and fifty cents, as well as one dollar each. In the early 2000s, two-dollar and five-dollar coins were added.
During the second denomination, coins in denominations of 10 and 25 dollars were in circulation. The state had plans to introduce coins worth 5 and 10 thousand dollars, but they were never minted.
Banknotes
Since the liberation of the country, Zimbabwe paper money began to be issued. Initially, notes in denominations of one, five and ten dollars were put into circulation. After 2 years, another twenty-dollar bill was added to them.
In the nineties, 50 and 100 dollars also began to be produced . In 2001, a banknote of 500 dollars was introduced, and in 2003 - 1000 Z $.
Due to the incredibly high rate of inflation in the country there was a shortage of money supply, so the issue of emergency checks began. Their face value was from 5 to 100 thousand dollars Zimbabwe. However, these and other measures aimed at saving the national currency did not have the desired effect, therefore, as a result, the currency ceased to exist.
Zimbabwe Crisis
Such an unprecedentedly high inflation (hyperinflation) of money in Zimbabwe is associated primarily with economic problems in the country. Despite the fact that South Africa is considered the more economically developed region of this continent, Zimbabwe is significantly behind its territorial neighbors.
The country has few natural resources, no access to the sea. In addition, the country gained independence late. The inept management of the state by the leadership also played not in its favor. Together, all of these factors have led to the fact that a long and rather difficult economic crisis has begun in the country, which continues to this day.
Although in recent years there have been some shifts for the better, the impact of the economic crisis in Zimbabwe on the currency and its value has been very large.
Rate
The Central Bank of Russia, even during its use in the South African country of ZWL, did not establish the official ruble exchange rate for this currency. There was simply no need for this, since the Russian Federation and Zimbabwe practically do not interact with each other. Trade and economic relations are poorly developed, and tourists from Russia rarely visit this state. In general, Russians know little about Zimbabwe. Money, exchange rate and history of the currency of this state are of little interest to our fellow citizens. Unfortunately this is the case.
Various financial institutions set their own exchange rate of Zimbabwe money to the ruble, but depending on the company, it could change significantly. Often several times a day.
As for the modern currency of this country, its rate is not difficult to determine, since the American dollar is now used there. Therefore, Zimbabwean money at the exchange rate against the ruble corresponds to the US dollar. According to 2017, for one USD you can get about 58-60 rubles.
If we compare modern Zimbabwean money at the exchange rate against the US dollar, it will be identical. Since it is the same currency, no matter where it is used. In addition, the American dollar is used today as the official currency not only in the USA and Zimbabwe, but also in some other countries of the world, for example, in Ecuador.
Exchange operations
Today, you can come to the country without worrying about how to exchange money for local ones, because you can simply take US dollars with you. In addition, in the cities of Zimbabwe, you can easily exchange the currency of neighboring countries, for example, the South African rand, as well as the pound sterling and the euro.
You can change money at the airport and large financial organizations. But it will be much easier to do this in Russia, because the commission will not be so high.
Previously, when the country used the national money of Zimbabwe, the situation with the currency exchange was much worse. Especially when the situation with the depreciation of money worsened. The exchange rate could change several times a day.
In such a situation, not every financial institution was ready to work with currency exchange.
Cashless payments
The country is quite far behind in development from the advanced countries of the West, and therefore the situation with cashless payments in Zimbabwe is far from the best. You can pay for a purchase or service using a bank plastic card only in large stores, hotels and restaurants.
Even in large cities, there are not everywhere non-cash payment terminals, and in rural areas you can hardly pay by cashless payment anywhere.
Using credit cards of foreign banks will be even more difficult, since they are almost never accepted. Therefore, going to this country, it is better to get enough cash in advance. In Zimbabwe there are not many bank branches where you can cash out your funds, and there are even fewer ATMs.
Fortunately, now the state uses the American dollar. This significantly reduced the financial difficulties arising for foreigners coming to this country.
In recent years, there have been some positive trends in this matter. In the capital of the country, Harare, there are more and more banks and ATMs, as well as exchange offices. The country's authorities and large businesses are now focused on the development of the tourism sector, where you can earn pretty good money.
Interesting Facts
The depreciation of money in Zimbabwe was so rapid that literally within one day the exchange rate could change several times. Prices for goods and services also rose several times a day. For example, in 2008, they took 100 billion Zimbabwean dollars for a can of beer, and after just one hour it could already cost 150 billion.
It is also interesting that Gideon Gono, who was then the director of the Reserve Bank of the country, received the Shnobel Prize (the antipode of the Nobel Prize), which is presented as the most stupid, unnecessary and strange discovery and achievement. He was handed it to him because he, by means of rapid hyperinflation, taught the entire population of the country mathematics, forcing them to learn to count in the range from one to 100 trillion.
Situation today
Now it’s hard to understand how much money is in Zimbabwe, since several currencies in the country are payment. In 2016, the Reserve Bank limited the possibility of withdrawing cash in dollars, euros, and South African rand, which are actively used in the country as means of payment.
The export of these currencies outside the country is also limited. The Bank seeks to expand the use of currencies other than the US dollar. The authorities ordered the population to donate part of the proceeds not only in dollars, but also in euros and rands.
Also, owners of trade organizations were required to indicate the cost of goods not only in dollars, but also in South African rand. It is likely that the government is seeking financial reform. Perhaps the state will be adopted as the official currency of South Africa, which is already used in almost all South African states.
This would be the best solution for Zimbabwe, since the most important trade and economic partner for this country is South Africa, and not the United States. Accordingly, the use of the currency of this country is more profitable and convenient than American.
It is still unknown how the country's authorities will act in the near future to solve existing problems, but they certainly will not be inactive, since this is fraught not just with a severe crisis, but with a real collapse of the country's economy. In no case can this be allowed, so an urgent need to seek a way out of this situation.
Conclusion
Zimbabwe is a country quite interesting in cultural, historical and natural terms, but too distant. Therefore, Russians rarely visit her. In addition, the lack of the sea and high service for recreation does not attract people.
Today, the country does not observe an increase in interest in the development of the tourism industry, therefore significant financial injections are directed here. Who knows, perhaps in the near future this country will become one of the most attractive for tourism in the South African region. There are necessary resources for this in the country. It is great for eco-tourism and ethno-tourism, here you can conduct safari on the African savannah no worse than in Kenya or Tanzania.
Be that as it may, now the country is in a transitional period when changes are taking place and will occur in almost all areas of the economy and life. The financial sector is one of the most problematic and important, therefore, changes will be made in this area more than once.