Wednesday, March 12, 2008
The picture shows a Zimbabwean carrying pile load of cash to buy something. Seems like a lot of money… but fact is the pile of cash is probably worth less than 100 US dollars.
Zimbabwe is suffering from an inflation crisis. The annual inflation in the African country has rocketed past the 100,000% barrier in March, by far the highest in the world (2nd placed Iraq has an estimated inflation of 60%).
Zimbabwe’s currency has tumbled to a record low of 25 million Zimbabwe dollars to one US dollar. 100 US dollars could exchange for nearly 20kg of local currency.
Frankly, it’s hard to imagine how a country would manage to get themselves into the troubled situation. My countrymen would be crying like babies if our annual inflation rates reached 10%… 100,000% inflation? That’s unthinkable.