Zimbabwean dollar facts for kids
Quick facts for kids Zimbabwean dollar |
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| ISO 4217 Code | ZWL | ||
| User(s) | None (previously  Zimbabwe) |
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| Inflation | 98% per day in mid-Nov 2008 or ~1023 % per year Money loses half its value every 24 hours and 42 minutes |
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| Subunit | |||
| 1/100 | cent | ||
| Symbol | $ | ||
| Coins | none | ||
| Banknotes | $1, $5, $10, $20, $50, $100, $500, (plus many more denominations) Highest denomination – $1014 |
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| This infobox shows the latest status before this currency was rendered obsolete. | |||
The Zimbabwe dollar was the money used in Zimbabwe from 1980 until 2009. Zimbabwe faced a huge problem with inflation, which is when prices for things go up very fast. This meant that the Zimbabwe dollar lost its value quickly.
Because of something called hyperinflation, which is inflation that is completely out of control, the Reserve Bank of Zimbabwe had to print banknotes with extremely high values. This was to keep up with the rising cost of everyday items. For example, in January 2009, Zimbabwe even released a banknote worth one hundred trillion dollars, which is $100,000,000,000,000!
Contents
Why Money Lost Its Value: Hyperinflation Explained
Hyperinflation means that money loses its buying power very, very quickly. Imagine if a candy bar cost $1 today, but tomorrow it cost $10, and the day after it cost $100! That's what hyperinflation feels like. In Zimbabwe, prices for goods and services went up incredibly fast.
Printing More Money: A Temporary Fix
When prices go up, people need more money to buy the same things. To help with this, the Reserve Bank of Zimbabwe printed more and more banknotes. But printing too much money can actually make inflation worse. It's like trying to put out a fire by adding more fuel.
Revaluing the Dollar: Trying to Reset
The Zimbabwe dollar had to be changed three times because its value kept dropping so much. This process is called "revaluation." It happened in August 2006, August 2008, and February 2009. Each time, the government tried to remove zeros from the currency. For example, if you had 1,000,000 old dollars, they might become 1 new dollar.
The first revaluation in August 2006 was very difficult for many people. They found it hard to change their old money into the new currency. Because of this, many people lost their savings.
What Happened Next: Using Other Countries' Money
Since April 12, 2009, Zimbabwe stopped using its own dollar. Instead, people in Zimbabwe started using money from other countries. The most common currencies used there now are the United States Dollar and the Euro. This helped to stabilize the economy and make prices more predictable.
Images for kids
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A Series 2008 bearer cheque for 100 million Zimbabwean dollars
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A selection of Reserve Bank of Zimbabwe bearer cheques printed between July 2007 to July 2008 (now expired) showing the hyperinflation rate in Zimbabwe.
See also
In Spanish: Dólar zimbabuense para niños
