Zimbabwean dollar
From Freepedia
The Zimbabwean dollar (Z$) (ISO 4217 currency code ZWD) is the legal tender currency of Zimbabwe.
It was formerly known as the Rhodesian dollar (R$), which was adopted in 1970 following decimalisation and the replacement of the Pound as the currency, at a rate of 2 Dollars = 1 Pound. At the time of independence in 1980, one Zimbabwean dollar (of 100 cents) was approximately the same value as one Pound Sterling, but rampant inflation and the collapse of the economy has severely devalued the currency, with many organisations using the US dollar instead. Actually, according to Guinness Book of World Records, the Zimbabwe Dollar has the highest inflation in the world at 385% in 2003 [1].
By 26 August 2005, the currency had devalued to Z$24,500 per US dollar at the official rate. The black market rate is currently around double the official rate. The largest standard-issue banknote in circulation is currently Z$1,000. The government, however, has issued bearer cheques in larger denominations to offset the money shortage.
In May 2003, a private company, the Cargill Group, issued Bearer Cheques for Z$5,000 and Z$10,000. Zimbabwe's Central Bank, the Reserve Bank of Zimbabwe (RBZ), followed a few months later with a series of travellers' cheques in the following denominations: Z$1,000, 5,000, 10,000, 20,000, 50,000 and 100,000. These proved unpopular with the general public due to need to produce ID both during issue and encashment of these and also the obvious limited usage—can only be used once by the bearer.
In late September, RBZ issued bearer cheques in the following values Z$5000, 10,000, 20,000 on old Z$50 banknote stock. These bearer cheques were limited in usage to approximately three months from issue. This is not applied, however, and all bearer cheques remain valid. Other companies issued bearer cheques in rural districts of Zimbabwe. These are not regarded as authorised issues by the RBZ.
Coins remain legal tender. Occasionally the Z$5 coin is encountered in rural usage. Otherwise these coins presently function as gambling tokens in Zimbabwean casinos.
In late October 2005, plans were made public about imminent redenomination in early 2006.
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