Wednesday, July 30, 2008

Zimbabwe solves zero problem

As Jethro once observed: "Funny thing about them naughts, when they're by themselves, they aint worth shucks but when you put them behind some other numbers, them rascals is dynamite." From Al Alam (Iran):
Zimbabwe will drop 10 zeros from its hyper-inflated currency -- turning 10 billion dollars into one -- the country's reserve bank said Wednesday.

On Wednesday, central bank governor Gideon Gono announced he was dropping 10 zeros from the currency, effective Friday. That comes a week after he introduced a 100 billion-dollar note which was not enough to buy a loaf of bread . . .

Computers, electronic calculators and automated teller machines at Zimbabwe's banks cannot handle basic transactions in billions and trillions of dollars . . .
Besides the problem of adjusting the amounts to compensate for the inflation that occurred since the beginning of the ATM transaction.

Update: Irony alert--"Zimbabwean banknotes with face values of up to 100 billion dollars are changing hands on eBay for hundreds of times their actual worth."

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