The sad state of Zimbabwe

http://ap.google.com/article/ALeqM5i4kT7pJlnuzY_vpKdTACcQYIPcvQD9286J480

(Sad extracts from this article.)


Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country's reserve bank said Wednesday.

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On Wednesday, central bank governor Gideon Gono announced he was dropping 10 zeros from the currency, to turn 10 billion dollars into one, effective Friday. That comes a week after he introduced a 100 billion-dollar note that was not enough to buy a loaf of bread.

Gono said high inflation was affecting operations of the country's computer systems. Inflation is officially running at 2.2 million percent but independent economists say it's nearer 12.5 million percent.

Computers, electronic calculators and automated teller machines at Zimbabwe's banks cannot handle basic transactions in billions and trillions of dollars.

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One-third of Zimbabweans have become economic and political refugees. Another third is dependent on foreign food aid. But Mugabe barred non-governmental organizations from handing out food last month, claiming they were feeding only opposition supporters.

In the first major signal that companies are wary of doing business with the government, a European firm this month stopped providing paper for the bank notes whose prolific printing helps keep Mugabe's regime afloat.

Gono said the new money would be launched Friday with 500-dollar bills. He also said he was reintroducing coins, which have been obsolete for years.