Zimbabwe Coins Document Inflation

Zimbabwe set a dubious world record for highest currency denomination when, in 2009, it issued bank notes in the astronomical value of 100 trillion Zimbabwe dollars. By the time this Reserve Bank of Zimbabwe note was being released, local citizens were stampeding to spend U.S. dollars and South African rands instead, considering Zimbabwe’s currency less than worthless. The focus of the newspaper story is not the hyperinflation that decimated Zimbabwe’s economy, and drove its citizens to use foreign rather than domestic coins and bank notes. Instead, the story detailed how the worthless 100-trillion dollar bank note is now a hot item on E-bay, and in collector markets a Crisp Uncirculated example typically realizes $5 in U.S. currency. Coin collectors reading this article are likely thinking that this is all very interesting, but coins aren’t issued in such astronomical denominations when inflation gets out of hand. Generally speaking, metal coins vanish during periods of rampant inflation, the government turns on the printing presses to produce notes of increasing denominations, and the purchasing power of these notes plummets. Yes, it is more challenging to identify hyperinflationary denomination coins than bank notes. This is partly because there are so many non-circulating legal tender commemorative coins that were never meant to be spent. Sometimes you have to look more closely to identify which are the true NCLT coins, and which coins with very high denominations were issued with the intention of keeping up with inflation. In the later years of the Peoples’ Republic of Poland, inflation became a serious problem. That fact can be seen through its bank notes, but there was also an attempt to keep coins in circulation by the issuance of a 1991 ringed bimetal circulating commemorative 20,000-zlotych coin composed of a copper-nickel center and a brass composition outer ring. In very recent history Turkey, rather than Zimbabwe, is a better example for coin collectors to examine. While coins vanished from circulation in Zimbabwe, the Turkish government continued to attempt to keep metal coins in commerce with such issues as the copper-nickel 50-bin lira (50,000-lira) of 1996-2000, and its 1999 counterpart composed of aluminum. Between 1999 and 2000 a copper-nickel-zinc 100-bin lira or 100,0000-lira coin was also issued for circulation.

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Zimbabwe Coins Document Inflation
Zimbabwe Coins Document Inflation

Zimbabwe's bank notes, according to a story in the May 11 Wall Street Journal newspaper, “[are] a national symbol of monetary policy run amok.” The focus of the newspaper story is not the hyperinflation that decimated Zimbabwe's economy, and drove its



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German National Symbols - Bookshelf

National Symbols of Germany, Flag of Germany, Deutschlandlied, Eagle, Brandenburg Gate, Auferstanden Aus Ruinen, Coat of Arms of Germany

National Symbols of Germany, Flag of Germany, Deutschlandlied, Eagle, Brandenburg Gate, Auferstanden Aus Ruinen, Coat of Arms of Germany


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