The Zimbabwean dollar (sign: $, or Z$ to distinguish it from other dollar-denominated currencies) was the name of four official currencies of Zimbabwe from 1980 to 12 April 2009. The Zimbabwean dollar was introduced in 1980 to directly replace the Rhodesian dollar (which had been introduced in 1970) at par (1:1), at a similar value to the US dollar.
In the 20th century the dollar functioned as a normal currency, but in the early 21st century hyperinflation in Zimbabwe reduced the Zimbabwean dollar to one of the lowest valued currency units in the world. Use of the Zimbabwean dollar as an official currency was effectively abandoned on 12 April 2009. On 24 June 2019, the Reserve Bank of Zimbabwe abolished the multiple-currency system and replaced it with a new Zimbabwe dollar (the RTGS Dollar),[9] which was the only official currency in the country between June 2019 and March 2020, after which multiple foreign currencies were allowed again.
Let's delve into the historical exchange rates between the Zimbabwean Dollar (ZWD) and the United States Dollar (USD), examining the factors that led to its eventual abandonment.
It is important to note that currency converters use the mid-market rate, which is for informational purposes only. You won’t receive this rate when sending money.
Zimbabwe and Hyperinflation: Who Wants to Be a Trillionaire?
The First Zimbabwean Dollar (ZWD)
The first Zimbabwean dollar was introduced in 1980 and replaced the Rhodesian dollar at par. The initial ISO 4217 code was ZWD. The value of the dollar began to erode significantly from August 1991 onwards: originally, this was because of the Economic Structural Adjustment Programme (ESAP), a programme of economic liberalisation that dismantled a planned "siege" economy from the UDI era.
Read also: Hyperinflation in Zimbabwe
The currency's official and parallel rates continued to plummet in the context in falling incomes from exports, the chaotic redistribution of land to inexperienced farmers, and Zimbabwe's involvement in the Second Congo War.
In October 2005, the Governor of the Reserve Bank of Zimbabwe at the time, Dr. Gideon Gono, announced that Zimbabwe would have a new currency the following year, and new banknotes and coins would be produced. However, in June 2006, it was decreed that, for a new currency to be viable, Zimbabwe had to first achieve macro-economic stability.
Redenomination and the Second Dollar (ZWN)
Instead, in August 2006, the first dollar was redenominated to the second dollar at the rate of 1000 first dollars to 1 second dollar (1000:1). At the same time, the currency was devalued against the US dollar, from 101000 first dollars (101 once revalued) to 250 second dollars, a decrease of about 60%.
ISO originally assigned a new currency code of ZWN to this redenominated currency, but the Reserve Bank of Zimbabwe could not deal with a currency change, so the currency code remained 'ZWD'. The revaluation campaign, which Gideon Gono named "Operation Sunrise", was completed on 21 August 2006.
The Third Dollar (ZWR) and Hyperinflation
The following year, on 2 February 2007, the RBZ revealed that a new (third) dollar would be released. However, with inflation still exceeding 1000%, the banknotes were kept in storage. During the same month, the Reserve Bank of Zimbabwe declared inflation illegal, outlawing any raise in prices on certain commodities between 1 March and 30 June 2007.
Read also: A Look at Zimbabwe's Currency Crisis
On 30 July 2008, the dollar was redenominated and given a new currency code of ZWR. After 1 August 2008, 10 billion ZWN were worth 1 ZWR. Coins valued at Z$5, Z$10 and Z$25 and banknotes worth Z$5, Z$10, Z$20, Z$100, and Z$500 were issued in ZWR.
Due to frequent cash shortages and the apparently worthless Zimbabwean dollar, foreign currency was effectively legalised as a de facto currency on 13 September 2008 via a special program. This program officially allowed a number of retailers to accept foreign money. This reflected the reality of the dollarisation of the economy, with many shop keepers refusing to accept Zimbabwe dollars and requesting US dollars or South African rand instead.
Despite redenomination, the RBZ was forced to print banknotes of ever higher values to keep up with surging inflation, with ten zeros reappearing by the end of 2008.
The Zimbabwean dollar's predecessor, the Rhodesian dollar, was essentially equal to half of the value of the pound sterling at the time of its adoption (during the decimalisation of 1970). A similar practice was used in other Commonwealth countries such as South Africa, Australia, and New Zealand.
The Fourth Dollar (ZWL) and Demonetization
On 2 February 2009, a third redenomination took place, in which the RBZ removed 12 zeros from the currency, with 1,000,000,000,000 (third, ZWR) Zimbabwe dollars being exchanged for 1 new (fourth, ZWL) dollar. Therefore, the fourth dollar (ZWL) is equivalent to 10,000,000,000,000,000,000,000,000, or 1×1025 or 10 septillion first dollars (ZWD) (or 1 trillion third dollars).
Read also: Zimbabwean Currency Crisis
Despite the introduction of the fourth dollar, however, the problems were not eliminated, and the economy continued to be almost completely dollarised. In his first budget, the Zimbabwe finance minister, Tendai Biti, stated "the death of the Zimbabwe dollar is a reality we have to live with.
The use of foreign currencies was legalised in January 2009, causing general consumer prices to stabilise again after years of hyperinflation and price speculation. The move led to a sharp drop in the usage of the Zimbabwean dollar, as hyperinflation rendered even the highest denominations worthless.
In June 2015, the Reserve Bank of Zimbabwe began to formally demonetise the Zimbabwean dollar, reducing its value steadily to zero in order to complete a switch to the US dollar by the end of September 2015. The Zimbabwean government stated that it would credit 5 US dollars to domestic bank accounts with balances of up to 175 quadrillion Zimbabwean dollars, and that it would exchange Zimbabwean dollars for US dollars at a rate of US$1 to 35 quadrillion Zimbabwean dollars to accounts with balances above 175 quadrillion Zimbabwean dollars.
This move was meant to stabilise the economy and establish a credible nominal anchor under low inflation conditions. The exercise brought closure to the outstanding issue on the Zimbabwe dollar, further confirming the government's position that the local unit will not return anytime soon.
Shortly after the Zimbabwean dollar was discontinued, they were purchased as curiosities, or in quantity as novelty gifts, for example to financial advisers' clients to show why they should invest in diverse assets instead of cash, which loses its value over the long term.
Historical ZWD to USD Exchange Rate Statistics
Here's a look at the exchange rate statistics between ZWD and USD over the last few months:
| Statistic | Last 7 Days | Last 30 Days | Last 90 Days |
|---|---|---|---|
| High | 0.038049 | 0.038049 | 0.038049 |
| Low | 0.037636 | 0.037386 | 0.037102 |
| Average | 0.037925 | 0.037624 | 0.037476 |
| Volatility | 0.27% | 0.18% | 0.16% |
These statistics illustrate the volatility and fluctuations in the ZWD to USD exchange rate over recent times.
As of 16:00PM UTC today, five hundred thousand zimbabwean dollars equals $1,552.80 (one thousand five hundred fifty-two us dollars 80 cents). We use the mid-market rate for ZWL to USD conversion. The current exchange rate is 0.0031.
A year ago today, Z$500,000.00 would have been exchanged for $1,552.80, which is $0 lower than today’s rate. Over the past seven days, the most favorable exchange rate was $1,552.80.
Anyone who likes to collect elusive items would love to have a 500 Million Dollar bill as part of it. Never has the world seen a banknote with a denomination this high. Zimbabwe officials introduced the 500 Million Dollar banknote and gave the world something unbelievably new and enticing without intending to. This banknote is a rare commodity, and you won’t be able to find much of it.
Zimbabwe was inflation-wrecked and needed a way out of a financial crisis. The only way government officials could think to do so was to issue notes of the highest denominations. Unfortunately, the move to stabilize the economy did not go as planned and caused one of the worst inflations in the history of the world. The government had to abandon these highly denominated bills because inevitably the currency's value would have amounted to almost nothing.
Despite its original circumstances, the deserted currency has become worthwhile to the rest of the world. The bill is quite attractive, made out of a very fine material and has a very vibrant feel to it. It’s relatively large yet smooth. The edges are sharp and pointy and the surface is sublime with original sheen. The bill is a treat to hold in the hand.
The bill today is not a legal tender so it won’t buy you anything, but you can still have it in your collection as a rare and exclusive item. This is an excellent opportunity to grab hold to a part of history. There are very few people in the world who will tell you they have seen and felt the 500 Million Dollar note, and you could be one of them.
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