Editing Economy of Zimbabwe (section)

==== Hyperinflation (2004–2009) ====
{{See also|Hyperinflation in Zimbabwe}}
[[File:ZWDvsUSDchart.svg|thumb|right|Official, black market, and OMIR exchange rates Jan 1, 2001 to Feb 2, 2009. Note the [[logarithmic scale]].]]
Zimbabwe began experiencing severe foreign exchange shortages, exacerbated by the difference between the official rate and the [[black market]] rate in 2000. In 2004 a system of auctioning scarce foreign currency for importers was introduced, which temporarily led to a slight reduction in the foreign currency crisis, but by mid-2005 foreign currency shortages were once again severe. The currency was devalued by the central bank twice, first to 9,000 to the US$, and then to 17,500 to the US$ on 20 July 2005, but at that date it was reported that that was only half the rate available on the black market.

In July 2005 Zimbabwe was reported to be appealing to the South African government for US$1&nbsp;billion of emergency loans, but despite regular rumours that the idea was being discussed no substantial financial support has been publicly reported.

In December 2005 Zimbabwe made a mystery loan repayment of US$120 million to the [[International Monetary Fund]] due to expulsion threat from IMF.<ref>{{Cite web |date=2005-09-01 |title=Zimbabwe: Mugabe pays IMF - Zimbabwe {{!}} ReliefWeb |url=https://reliefweb.int/report/zimbabwe/zimbabwe-mugabe-pays-imf |access-date=2023-12-29 |website=reliefweb.int |language=en}}</ref><ref>{{Cite web |title=Zimbabwe makes $120M payment to IMF {{!}} Devex |url=https://www.devex.com/news/zimbabwe-makes-120m-payment-to-imf-46540/amp |access-date=2023-12-29 |website=www.devex.com}}</ref><ref>{{Cite news |last= |date=2005-09-01 |title=Zimbabwe Makes $120 Million Payment to I.M.F. |language=en-US |work=The New York Times |url=https://www.nytimes.com/2005/09/01/international/africa/zimbabwe-makes-120-million-payment-to-imf.html |access-date=2023-12-29 |issn=0362-4331}}</ref>

The official [[Zimbabwean dollar]] exchange rate had been frozen at Z$101,196 per U.S. dollar since early 2006, but as of 27 July 2006 the parallel (black market) rate has reached Z$550,000 per U.S. dollar. By comparison, 10&nbsp;years earlier, the rate of exchange was only Z$9.13 per USD.

In August 2006 the RBZ revalued the Zimbabwean Dollar by 1000 ZWD to 1 (revalued) dollar. At the same time Zimbabwe devalued the Zim Dollar by 60% against the [[USD]]. New official exchange rate revalued ZWD 250 per USD. The parallel market rate was about revalued ZWD 1,200 to 1,500 per USD (28 September 2006).<ref name="zz">{{Cite web |title=Timeline: Zimbabwe's economic woes |url=https://www.aljazeera.com/news/2007/3/11/timeline-zimbabwes-economic-woes |access-date=2023-10-26 |website=www.aljazeera.com |language=en}}</ref>

In November 2006, it was announced that sometime around 1 December there would be a further devaluation and that the official exchange rate would change to revalued ZWD 750 per USD.<ref name=k>{{cite web |url=http://www.zimbabwesituation.com/nov17_2006.html#Z12 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |archive-date=2010-12-02 |archive-url=https://web.archive.org/web/20101202160239/http://zimbabwesituation.com/nov17_2006.html#Z12 |url-status=live }}</ref> This never materialized. However, the parallel market immediately reacted to this news with the parallel rate falling to ZWD 2,000 per USD (18 November 2006)<ref name=l>{{cite web |url=http://www.zimbabwesituation.com/nov19_2006.html#Z3 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |url-status=dead |archive-url=https://web.archive.org/web/20100310015725/http://www.zimbabwesituation.com/nov19_2006.html#Z3 |archive-date=2010-03-10 }}</ref> and by year end it had fallen to ZWD 3,000 per USD.<ref name=m>{{cite web |url=http://www.zimbabwesituation.com/jan5a_2007.html#Z13 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |archive-date=2010-01-02 |archive-url=https://web.archive.org/web/20100102115920/http://zimbabwesituation.com/jan5a_2007.html#Z13 |url-status=live }}</ref>

On 1 April 2007, the parallel market was asking ZWD 30,000 for US$1.<ref name=n>{{cite web |url=http://www.zimbabwesituation.com/apr1_2007.html#Z22 |title=The Zimbabwe Situation |publisher=The Zimbabwe Situation |access-date=2010-05-30 |archive-date=2013-05-12 |archive-url=https://web.archive.org/web/20130512103210/http://www.zimbabwesituation.com/apr1_2007.html#Z22 |url-status=live }}</ref> By year end, it was down to about ZWD 2,000,000. On 18 January 2008, the [[Reserve Bank of Zimbabwe]] began to issue higher denomination ZWD bearer cheques (a banknote with an expiry date), including $10&nbsp;million bearer cheques – each of which was worth less than US$1.35 (70p Sterling; 0.90 Euro) on the parallel market at the time of first issue. On 4 April 2008 the [[Reserve Bank of Zimbabwe]] introduced new $25&nbsp;million and $50&nbsp;million bearer cheques.<ref name=ac>{{cite news|url=http://www.thetimes.co.za/PrintEdition/Article.aspx?id=742168|title=Fear and hope mingle as Harare awaits election results|publisher=www.thetimes.co.za|date=6 April 2008|access-date=2008-04-08|archive-date=2008-04-11|archive-url=https://web.archive.org/web/20080411060409/http://www.thetimes.co.za/PrintEdition/Article.aspx?id=742168|url-status=live}}</ref> At the time of first issue they were worth US$0.70 and US$1.40 on the parallel market respectively.

On 1 May 2008, the RBZ announced that the dollar would be allowed to float in value subject to some conditions.<ref name = zz/>

On 6 May 2008, the RBZ issued new $100&nbsp;million and $250&nbsp;million bearer cheques.<ref name=ad>{{cite news|url=http://www.thetimes.co.za/News/Article.aspx?id=761117|title=Zimbabwe's new $250m note|publisher=www.thetimes.co.za|date=6 May 2008|access-date=2008-05-08|url-status=dead|archive-url=https://web.archive.org/web/20080507015514/http://www.thetimes.co.za/News/Article.aspx?id=761117|archive-date=7 May 2008}}</ref><ref name=ae>{{cite news|url=http://www.afriquenligne.fr/news/africa-news/zimbabwe-introduces-new-high-denomination-notes-200805063085.html|archive-url=https://archive.today/20120418224559/http://www.afriquenligne.fr/news/africa-news/zimbabwe-introduces-new-high-denomination-notes-200805063085.html|url-status=dead|archive-date=18 April 2012|title=Zimbabwe introduces new high denomination notes|publisher=Afriquenligne|date=6 May 2008|access-date=2008-05-08}}</ref> At the date of first issue the $250&nbsp;million bearer cheque was worth approximately US$1.30 on the parallel market. On 15 May 2008, a new $500&nbsp;million bearer cheque was issued by the RBZ.<ref name=af>{{cite news|url=http://www.int.iol.co.za/index.php?set_id=1&click_id=68&art_id=nw20080515103036882C968918|title=Introducing the new Zim note...|publisher=IOL |date=15 May 2008|access-date=2008-05-08}}</ref> At the time of the first issue it was worth US$1.93. In a widely unreported parallel move, on 15 May 2008, the RBZ issued three "special agro-cheques" with face values $5&nbsp;billion (at time of first issue – $19.30), $25&nbsp;billion ($96.50) and $50&nbsp;billion ($193).<ref name=ag>{{cite news|url=http://allafrica.com/stories/200805210105.html|title=RBZ Issues Agro Cheques|publisher=All Africa|date=21 May 2008|access-date=2008-06-02|archive-date=2008-06-07|archive-url=https://web.archive.org/web/20080607020347/http://allafrica.com/stories/200805210105.html|url-status=live}}</ref> It is further reported that the new agro-cheques can be used to buy any goods and services like the bearer cheques.

On 30 July 2008, the Governor of the RBZ, [[Gideon Gono]] announced that the Zimbabwe dollar would be redenominated by removing 10 zeroes, with effect from 1 August 2008. ZWD10billion became 1&nbsp;dollar after the redenomination.<ref name=ah>{{cite news|url=http://news.bbc.co.uk/1/hi/world/africa/7532702.stm|title=Zimbabwe introduces new currency|work=BBC|date=30 July 2008|access-date=2008-07-30|archive-date=2008-10-03|archive-url=https://web.archive.org/web/20081003143001/http://news.bbc.co.uk/1/hi/world/africa/7532702.stm|url-status=live}}</ref>

More banknotes were issued since Gono vowed to continue printing money: $10,000 and $20,000 (29 September); $50,000 (13 October); $100,000, $500,000 and $1&nbsp;million (3 November); $10&nbsp;million (2 December); $50&nbsp;million and $100&nbsp;million (4 December); $200&nbsp;million (9 December); $500&nbsp;million (11 December); $10&nbsp;billion (19 December); $1&nbsp;trillion (17 January 2009).

On February 2, 2009, a final denomination was implemented, cutting 12 zeroes, before the Zimbabwe dollar was officially abandoned on April 12, 2009. Pending economic recovery, Zimbabwe relied on foreign currency rather than introducing a new currency.<ref>{{cite web|url=https://www.oanda.com/currency/iso-currency-codes/ZWD|title=Zimbabwe Dollar|publisher=OANDA|access-date=2017-04-09|archive-date=2017-04-10|archive-url=https://web.archive.org/web/20170410213827/https://www.oanda.com/currency/iso-currency-codes/ZWD|url-status=live}}</ref>