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The Southern African country of Zimbabwe has one of the most worthless currencies in the world.
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Imagine using millions to buy a few things.
In every country, their currency is the medium of exchange and a means of identification, but this is not the case in Zimbabwe.
Here’s why the Zimbabwean dollar is one of the most useless currencies in the world:
They don’t even use it as a medium of exchange
Since 2009, Zimbabwe uses other currencies, forgoing its own after the hyperinflation of over 5,000 percent made it virtually worthless.
Zimbabwe is uses currencies like the U.S. dollar, South African rand, British pound, Indian rupee, Japanese yen, and Chinese yuan, for day-to-day purchases to address hyperinflation.
This system has led to a deflation rate of -2.3%, according to Zimbabwe's bank governor.
They used to have a trillion-dollar note
Zimbabwe's Z$100,000,000,000,000 note, one trillion Zimbabwean dollars, was worth $0.40 when it was exchanged for U.S. dollars up until April 2016.
It is now being sold for higher prices as a novelty or collector's item on eBay.
When inflation got to 230,000,000 per cent in 2009, the country's central bank declared the U.S. dollar as its official currency.
Mismanaged economy
Inflation brought on by the government's excessive money printing has devalued the currency.
Zimbabwe's economy has been damaged by problems like political unrest, corruption, and unsustainable fiscal policies.
Dependency on imports
For necessities, Zimbabwe is largely dependent on imports. Purchasing foreign goods is difficult due to the ZWL's low value, which further devalues the currency as demand for stable foreign currencies rises.
Zimbabwe's economics stands as a warning post for countries that export nothing and import everything.
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