Hyperinflation in Zimbabwe

Quick Facts: Who was Hyperinflation in Zimbabwe?

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Hyperinflation in Zimbabwe

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A chronicle of extreme currency instability and economic collapse in Zimbabwe.

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2Day Chrono-Wiki & Primary Historical Archives

Origins & Early Life

The economy of Zimbabwe has been undergoing hyperinflation since February 2007, according to Cagan's definition of hyperinflation. During the height of inflation from 2008 to 2009, it was difficult to measure Zimbabwe's hyperinflation because the government of Zimbabwe stopped filing official inflation statistics. However, Zimbabwe's peak month of inflation is estimated at 790.6 billion percent month-on-month, 89.7 sextillion (8.97×1022) percent year-on-year in mid-November 2008. At that time, a $100 trillion banknote could not pay for a simple bus fare. In April 2009, Zimbabwe stopped printing its currency, and currencies from other countries were used.

Pivotal Works & Achievements

In mid-2015, Zimbabwe announced plans to completely switch to the United States dollar by the end of that year. In June 2019, the Zimbabwean government announced the reintroduction of the Real Time Gross Settlement dollar (RTGS), to be known simply as the "Zimbabwe dollar", and that all foreign currency was no longer legal tender. By mid-July 2019, inflation had increased to 175%, sparking concerns that the country was entering another period of hyperinflation. In March 2020, with inflation above 500% annually, a new task force was created to assess the currency problems. By July 2020, annual inflation was estimated to be 737%.

Enduring Legacy & Impact

On 18 April 1980, the Republic of Zimbabwe was born from the former Republic of Rhodesia. The Rhodesian dollar was replaced by the Zimbabwean dollar at par value. When Zimbabwe gained its independence from the United Kingdom, the newly introduced Zimbabwean dollar was initially more valuable than the United States dollar at the official exchange rate. However, that did not reflect reality because, in terms of purchasing power on the open and black markets, it was less valuable, due primarily to the higher inflation in Zimbabwe. In its early years, Zimbabwe experienced strong growth and development.

Chronological Milestones & Life Events

1. 1022: 1022 Milestone — 97×1022) percent year-on-year in mid-November 2008.
2. 1980: 1980 Milestone — On 18 April 1980, the Republic of Zimbabwe was born from the former Republic of Rhodesia.
3. 2007: 2007 Milestone — The economy of Zimbabwe has been undergoing hyperinflation since February 2007, according to Cagan's definition of hyperinflation.
4. 2008: 2008 Milestone — During the height of inflation from 2008 to 2009, it was difficult to measure Zimbabwe's hyperinflation because the government of Zimbabwe stopped filing official inflation statistics.
5. 2009: 2009 Milestone — In April 2009, Zimbabwe stopped printing its currency, and currencies from other countries were used.
6. 2015: 2015 Milestone — In mid-2015, Zimbabwe announced plans to completely switch to the United States dollar by the end of that year.
7. 2019: 2019 Milestone — In June 2019, the Zimbabwean government announced the reintroduction of the Real Time Gross Settlement dollar (RTGS), to be known simply as the "Zimbabwe dollar", and that all foreign currency was no longer legal tender.
8. 2020: 2020 Milestone — In March 2020, with inflation above 500% annually, a new task force was created to assess the currency problems.

Historical Fact-Check Quiz: Hyperinflation in Zimbabwe

True or False: “Zimbabwe's hyperinflation was solely caused by external economic sanctions from the US and IMF.”

Answer (FALSE ❌): While sanctions were a factor, internal issues like land reform, poor agricultural management, and excessive money printing also severely contributed to the crisis.

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Frequently Asked Questions about Hyperinflation in Zimbabwe