Zimbabwe Hyperinflation is Back
Hyperinflation in Zimbabwe was a period of currency instability in Zimbabwe that, using Cagan's definition of hyperinflation [50% in a month], began in February 2007. 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 79.6 billion percent month-on-month, 89.7 sextillion percent year-on-year in mid-November 2008.
In 2009, Zimbabwe stopped printing its currency, with currencies from other countries being used. In mid-2015, Zimbabwe announced plans to have completely switched to the United States dollar by the end of 2015. In June 2019, the Zimbabwe government announced the reintroduction of the RTGS dollar, now 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 a new period of hyperinflation.
It's hard to grasp numbers like 89.7 sextillion percent year-on-year in mid-November 2008.
Here is one way to visualize it: The Zimbabwe dollar and the US dollar were supposed to be pegged 1:1 but it took the staggering sum of $2,621,984,228 Zimbabwe dollars to buy one US dollar. Buying things with Zimbabwe dollars became next to impossible.
Zimbabwe hyperinflation stopped in 2015 but returned in 2019 when the country went back to the Zimbabwe dollar.
Zimbabwe Raises Benchmark Rate to 70% as Currency Plummets
Bloomberg reports Zimbabwe Raises Benchmark Rate to 70% as Currency Plummets
Zimbabwe’s central bank has raised its key...