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The Zimbabwean dollar replaced the Rhodesian Dollar At Par , which in turn had been adopted in 1970 as a Decimalisation replacement of the Rhodesian Pound at a rate of 2 Rhodesian dollars to 1 Rhodesian pound (R$ 0.71 = US$ 1.00). At the time of independence in 1980 , one Zimbabwean dollar was still worth more than the US dollar (ZWD 0.68 = USD 1.00). INFLATION Rampant Inflation and the collapse of the economy have severely devalued the currency, with many organisations using the US Dollar instead. Early in the 21st century Zimbabwe started to experience Hyperinflation . Inflation reached 624% in early 2004, then fell back to low triple digits before surging to a new high of 913.6% in March 2006. {Link without Title} According to the Guinness Book Of Records , Zimbabwe has currently the highest annual inflation rate in the world: {Link without Title} . Zimbabwe's annual rate of inflation is widely expected to reach four digits in 2006. On 16 February 2006 , the governor of the Reserve Bank of Zimbabwe, Dr Gideon Gono, announced that the government had printed ZWD 21 trillion in order to buy foreign currency to pay off IMF arrears. {Link without Title} EXCHANGE RATE HISTORY This table shows a condensed history of the foreign exchange rate: This table shows in more detail the historical value of one U.S. dollar in Zimbabwean dollars: COINS, BANKNOTES, BEARER CHEQUES AND TRAVELER'S CHEQUES Coins Coins have been issued since 1980 in denominations of 1, 5, 10, 20, and 50 cents as well as ZWD 1, 2, and 5. (click for image) These coins remain legal tender. However, due to their minuscule value, they function as gambling tokens in Zimbabwean Casinos . Banknotes Zimbabwe Banknotes have been issued in denominations of: The largest denomination, standard-issue Banknote in circulation is currently the ZWD 1,000. The government, however, has issued Bearer Cheque s in larger Denominations to offset the money shortage. Bearer cheques and traveler's cheques Cargill Cotton bearer cheques 2003 In May 2003, a private company, the Cargill Cotton Group, issued bearer cheques for ZWD 5,000 and ZWD 10,000. These were valid for a period of six months. By the end of 2003, 85% of them had been redeemed. (These are regarded as authorised issues by the RBZ.) RBZ traveller's cheques Zimbabwe's Central Bank , the Reserve Bank Of Zimbabwe (RBZ), followed a few months later with a series of Traveler's Cheque s in the following denominations: ZWD 1,000; ZWD 5,000; ZWD 10,000; ZWD 20,000; ZWD 50,000 and ZWD 100,000. These proved unpopular with the general public due to the need to produce ID both during issue and encashment of these, and also because of the obvious limited usage, since they can only be used once by the bearer. Example of RBZ Traveller's Cheque Design: RBZ bearer cheques Beginning in September 2003, the RBZ issued bearer cheques in the values of ZWD 5,000; ZWD 10,000 and ZWD 20,000 on old ZWD 50 banknote stock. These bearer cheques were supposed to have a limited period of validity and have an expiry date. This rule is not applied, however, and all bearer cheques remain valid. (Note: On 3 January 2006 the expiry date of all RBZ Bearer Cheques was once again extended. New expiry date is 30 June 2006.) On 1 February 2006 a ZWD 50,000 RBZ bearer cheque was issued. Examples of RBZ bearer cheque designs: Cargill Cotton bearer cheques 2004 In April 2004, the Cargill Cotton Group issued bearer cheques again. These were denominated ZWD 10,000, ZWD 20,000, ZWD 50,000 and ZWD 100,000. Other bearer cheques Other companies issued bearer cheques in rural districts of Zimbabwe. (These are not regarded as authorised issues by the RBZ.) NEW CURRENCY IN 2006 In late October 2005 , the head of the Reserve Bank of Zimbabwe, Dr. Gideon Gono, announced that "Zimbabwe will have a new currency next year." New banknotes and coins will replace the current Zimbabwean dollar, but Dr. Gono did not give a name for this new currency. Many international observers believe the goal of a new currency was merely a campaign strategy, and will be impossible to implement due to large scale shortages of ink and paper in the country. SEE ALSO EXTERNAL LINKS
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