Update on the Zimbabwe (ZIM) demonetization

(Pay heed if you have been excited by the prospect of imminent wealth)



Submitted by Tyler Durden on 06/11/2015 11:46 -0400


It's over! Starting June 15th and ending September 30th, the Zimbabwe Central bank will begin its process of "demonetization" of the old Zimbabwe Dollar. The Zimbabwe dollar will be removed as legal tender after the currency’s use was abandoned in 2009 following a surge in inflation to 500 billion percent. For bank accounts containing up to 175 quadrillion Zimbabwe dollars they will be paid $5, the country’s central bank said. The people remain angry slamming this as "abusing one's rights in the banking system," and claiming this is being done to enrich a chosen few.

As Bloomberg reports,

The Zimbabwe dollar will be removed as legal tender after the currency’s use was abandoned in 2009  following a surge in inflation to 500 billion percent.
 
For bank accounts containing up to 175 quadrillion Zimbabwe dollars they will be paid $5, the country’s central bank said.
 
A program of seizing white-owned commercial farms for redistribution to black subsistence farmers that began in 2000 slashed exports and triggered an almost 10-year recession. The economy is half the size it was in 2000, according to government statistics.
 
The country now uses currencies including the U.S. dollar and the South African rand.
*  *  *

As The Standard reports, Zimbabwe's Central banker was clear,

Central bank governor John Mangudya has clarified that $5 is the minimum that will be paid to each individual bank account holder as compensation for the Zimdollars people lost when the country switched to the current multi-currency regime in 2009.
 
Mangudya told The Standard that the full amount people will be compensated for their losses were being worked out using the United Nations exchange rate.
 
"If we used the UN rate for all accounts some accounts will get zero but we are saying the minimum that everyone will get from the Zimbabwe dollar accounts is $5," he said.
 
"The maximum that one gets will be determined by the UN rate as well. Demonetization is not compensation for inflation. Some people are expecting the central bank to compensate for the ills of inflation. That is not the role of government and no one in the world has been compensated for the ills of inflation."
 
Mangudya said the central bank was seeing demonetisation as the burying of the local currency.
*  *  *

People are not happy...

"Giving out US$5 does not even show sincerity to correcting an abuse of one's rights in this banking system -- most have described it as a mockery. What is worse, most are already suspecting money set aside for this as a scheme to enrich themselves considering how opaque the whole thing has been."


http://www.zerohedge.com/news/2015-06-11/zimbabwe-demonetizes-offers-us5-175-quadrillion-zim-dollars

Indonesia will not revalue as it is said either.

As I have been saying for months.

As currency dies, Zimbabweans will get $5 for 175 quadrillion local dollars
9 Hours Ago
Reuters


Zimbabweans will start exchanging "quadrillions" of local dollars for a few U.S. dollars next week, as President Robert Mugabe's government discards its virtually worthless national currency, the central bank said on Thursday.

The southern African country started using foreign currencies like the U.S. dollar and South African rand in 2009 after the Zimbabwean dollar was ruined by hyperinflation, which hit 500 billion percent in 2008.



Jekesai Njikizana | AFP | Getty Images

At the height of Zimbabwe's economic crisis in 2008, Zimbabweans had to carry plastic bags bulging with bank notes to buy basic goods like bread and milk. Prices were rising at least twice a day.

From Monday, customers who held Zimbabwean dollar accounts before March 2009 can approach their banks to convert their Zimbabwean dollar balance into dollars, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said in a statement.

The process will legally end the local currency. Zimbabweans have until September to turn in their old bank notes, which some people sell as souvenirs to tourists.


Bank accounts with balances of up to 175 quadrillion Zimbabwean dollars will be paid $5. Those with balances above 175 quadrillion dollars will be paid at an exchange rate of $1 to 35 quadrillion Zimbabwean dollars.

The Worst Hyperinflation Situations of All Time

Photo: Wikimedia Commons

The highest—and last—bank note to be printed by the RBZ in 2008 was 100 trillion Zimbabwean dollars. It was not enough to ride a public bus to work for a week.

The RBZ said customers who still have stashes of old Zimbabwean dollar notes can walk into any bank and get $1 for every 250 trillion they hold.

That means a holder of a 100 trillion bank note will on Monday get 40 cents. The RBZ has set aside $20 million to pay Zimbabwean dollar currency holders.


http://www.cnbc.com/id/102752428

But, but, but .. Phony and his idgits said it was going to RV any day now, must be a clever trick to get the regular people to give up theirs so the evil cabal can keep it all to themselves ....

There are those who still think this is some kind of plan to get a lot of the currency out of circulation before they raise the rate. They just don't get that this is the official end of any exchange of any of the old Zimbabwe dollars. The Zim is now officially, just paper.

GONNA WALLPAPER THE THRONE ROOM WITH IT!