Its official, Gono the Reserve Bank of Zimbabwe Govenor has devalued the Zimbabwean Dollar and knocked three zeros of the currency.

With the hyperinflation in Zimbabwe, it only makes sense to do so. At least people do not have to walk around with huge bags of money which is worthless. $100 000 bearer’s cheque was only introduced last months. I wonder if the Govenor knew then that he was going to drop the zeros, there was no point in having such an expensive exercise to print new currency only for a month

What impact will this have?
Surely the industry will have a lot of work adjusting prices. All those tenants agreements etc will now have to be updated so its no easy task. Gono has given 3 weeks only for people to change their now old currency. This will have an short term impact on the economy as people are going to spend all the money they currently have. Already there is speculation that people would want to invest in assets like property. What it now means is property will now be costing millions insted of billions. Houses for sale in Harare’s middle density surburbs were now costing around $30billion, now the same house will cost $30million. At least it will make it easier to track the prices. I was getting mixed up with the currency too trying to work out how much it is worth. My only hope is that the currency stabilise otherwise we will be in the same situation in a few years. It was onnly in 2002 when £1 was worth $1000

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