Exchanging Currencies in Zimbabwe

It is common to have a local try to sell you a stack of Zimbabwean dollars that cannot be used anymore. It has become a souvenir and a rather interesting tourist item. Do you want to become a trillionaire?

Zimbabwe has an interesting economic history. In 2008 the Zimbabwean dollar became almost worthless as it was hit with the highest inflation rates in the history of the world. The attempts to reestablish the Zimbabwean dollar and to turn around the economy have so far failed.

Victoria Falls Market Place

While the Zimbabwean dollar was a high valued currency upon its inception in 1980, it was plagued by hyperinflation and had bank notes up to $100 trillion. Locals told me that it cost about $1-2 trillion to buy a loaf of bread at its most extreme. Any cash below the billion dollar notes became worthless and even million dollar notes weren’t utilized. In 1983 1 Zimbabwean dollar could be exchanged for 1 U.S. dollar but in July, 2008 it was 758 billion Zimbabwean dollars for 1 U.S. dollar (at one point during 2008 inflation was estimated at about 40-50 million percent). The government tried on three separate occasions to reestablish the Zimbabwean dollar in 2006, 2008 and 2009. Each attempt was unsuccessful and eventually lead to the elimination of the Zimbabwean dollar. The U.S. dollar became the main currency. But as I found out there are many different currencies that can be accepted in Zimbabwe, including the South African Rand, Botswanan Pula and U.S. dollar. It is common to pay for an item with one of these currencies and get change in another one, all part of one transaction.

While walking in the streets of Victoria Falls it is easy to see the devastating effects of the political and economic situation in Zimbabwe. As a place for tourism, it has been put into dire straits. Tourists have managed to see the falls from the Zambian side now more often than not, leaving a declining tourist industry in Victoria Falls, Zimbabwe. It has greatly impacted the way of life of the general population and made it hard for many to get by. The locals still have hope in a new Zimbabwe free of its vast political and economic problems. They are in waiting for a new era, one without Robert Mugabe and with transformative reconstruction. Hopefully the Zimbabwean dollar can be reinstated again when the economy is strong!