The 10 trillion Zimbabwe dollar banknote represents a fascinating yet tragic chapter in the economic history of Zimbabwe. Issued in 2008, these notes became emblematic of the country's hyperinflation crisis. Let's delve into the details of this extraordinary currency and the circumstances surrounding its creation.
Design and Features
10 trillion Zimbabwe banknotes were created in 2008 and have the same design on the front as the rest of the series with the Balancing Rocks from Chiremba.
The 10 trillion notes differ in terms of the design on the reverse the denomination (10,000,000,000,000) and color.
Each 10 trillion note features the Reserve Bank of Zimbabwe on the reverse.
It is located in the capital city of Zimbabwe, Harare, and was established in March of 1956 as a central bank for Rhodesia and Nyasaland.
Read also: Zimbabwean Currency Crisis
To the right of the building are the mysterious ruins of Great Zimbabwe.
These ruins are located in the Masvingo Province of Zimbabwe, and contrast with the renovated reserve bank.
The 10 trillion Zimbabwe banknotes were created in 2008 and have the same design on the front as the rest of the series with the Balancing Rocks from Chiremba.
Zimbabwe’s Currency Crisis: the worthless trillion bill
Hyperinflation and Economic Collapse
Throughout the late 90's and the 2000's, inflation began to spin out of control in Zimbabwe, causing the country to issue larger and larger bank notes, culminating the trillion dollar notes minted in 2008.
Read also: Collector's Item: Zimbabwe Note
According to the Cato Journal, inflation reached an estimated peak of 6.5 sextillion percent in mid-November 2008, representing a complete and utter collapse of the Zimbabwe Dollar.
Zimbabwe officially abandoned their currency in early 2009 and to date, does not have an official currency.
However, in 2008, millions of ten, fifty and one hundred trillion dollars notes were printed.
Zimbabwe bank notes consist of former currency from the Republic of Zimbabwe.
The Zimbabwean Dollar: A Brief History
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.
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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.
Redenomination and Currency Codes
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.
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.
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% (see exchange rate history table below).
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 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.
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.
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).
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.
It was reported that on 1 July 2008 the company's management board decided to cease delivering banknote paper to the Reserve Bank of Zimbabwe with immediate effect.
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.
Coins of Zimbabwe
In 1980, coins were introduced in denominations of 1, 5, 10, 20, 50 cents, and 1 dollar.
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