Zimbabwean dollar ZWL
Definition of 'Zimbabwean dollar ZWL'
This was once one of the worlds strongest currencies when it replaced the Rhodesian dollar in 1980 but due to economic mismanagement, hyperinflation and political turmoil it has become one of the world's least valued currency units.
Inflation had risen from an annual rate of 32% in 1998 to an estimate (IMF) of 150,000% in December 2007. It reached an official estimated high of 231,000,000% in July 2008. This represented a state of hyperinflation, and the central bank introduced a new 100 billion dollar note (picture above). As of November 2008, unofficial figures put Zimbabwe's annual inflation rate at 516 quintillion per cent, with prices doubling every 1.3 days. Zimbabwe's inflation crisis during 2009 was the second worst inflation spike in history. The only other country to exceed this was Hungary in 1946 when prices doubled every 15.6 hours.
In an effort to combat inflation and foster economic growth the Zimbabwean Dollar was suspended indefinitely on 12 April 2009. Zimbabwe now allows trade in the United States Dollar and various other currencies such as the South African Rand, Euro, and Botswana Pula. The use of the US Dollar yielded enormous results within weeks as inflation actually fell below zero to -3 percent.
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