10 Trillion?
How much exactly is 100 Trillion?
1 million = 1,000,000
1 billion = 1,000 million = 1,000,000,000
1 trillion = 1,000 billion = 1,000,000,000,000
10 trillion dollar = 100,000,000,000,000 ??
Is this insane or what?
Yes, it is insane, but for a country with 231 million % inflation rate, the Zimbabwean government is issuing a new note at this denomination. The currency is affectionately named as the Zim dollar. A zippy name for a currency, but seems like the value keeps on ‘zimming’ downwards.
Wonder what the interest rate is ?
From the site of Reserver Bank of Zimbabwe:
INTEREST RATES 19/01/09
Overnight
10 000.00%
Interbank
-.–%
TB - 91 Days
66.33%
WHAT ??? 10,000% Interest??? I wonder how economics work in Zimbabwe??? I’m just plain curious..
A look at the currency exchange rate
http://sg.finance.yahoo.com/q?s=USDZWD=X
1 ZWD = 0.00000005690 USD ….. wtf???
1 USD = 17,575,200 ZWD now let’s look the its CPI, consumer price index. I wish this is my bank account balance!!! :P
12.5 million percent inflation rate in 2007 ?????? going 231 million % in 2008 is not surprising at all.
going at this rate, 5 billion in 2009 is not beyond the wildest dreams……
Year
All Items CPI
Year On Year Price Increases
1990
29.6
15.5
1991
36.8
24.3
1992
52.3
42.1
1993
66.7
27.5
1994
81.6
22.3
1995
100.0
22.5
1996
121.4
21.7
1997
144.3
18.9
1998
190.1
31.7
1999
301.3
58.5
2000
469.6
55.9
2001
100.0
71.9
2002
233.2
133.2
2003
1084.5
365.0
2004
4880.3
350.0
2005
16486.4
237.8
2006
184101.1
1016.7
2007
12562581.7
6723.7
So what about the Banking institutions in Zimbabwe? What kinds of rates do they offer for their products? What service charge??? Well, be prepared for a shocking piece of info.
Can u believe your eyes? Well, it’s a fact and it’s published on the official site of the Zimbabwean government.
The Reserve Bank has noted with great concern the astronomical and unjustifiable increases in bank charges by banking institutions over the past few months. Admittedly banks need to cover their operational costs. The charges levied by some banking institutions on their various products and services, however, demonstrate unacceptable predatory practices.
Yeah..intervention…. U better do.
Wanna see more? Click the link below
At current levels, charges levied by banking institutions are way above salaries earned by the majority of banking institutions’ customers, a phenomenon which is detrimental to banks’ core mandate of financial intermediation.
http://www.rbz.co.zw/pdfs/bank_circular.pdf
Quoted from http://www.reuters.com/article/latestCrisis/idUSLG406668
HARARE, Jan 16 (Reuters) - Zimbabwe’s central bank will introduce a 100 trillion Zimbabwe dollar banknote, worth about $33 on the black market, to try to ease desperate cash shortages, state-run media said on Friday.