Zimbabwe Currency

[bsshog40]

I have 2 uncirculated 100 trillion dollar notes. I know I didn't give more than a couple buck for both of them off the bay a few years ago. I see them going for $50-130 now on the bay. Whats with the increase in value?

[Star City Homer]

Inflation.

 

(I crack me up )

[Conder101]

They haven't made any for several years, most of them have probably been damaged through use, they are a popular novelty type items, and Zimbabwe is currently in the news.   That has drawn attention to the notes, but I wouldn't say that they are worth what you say they have been bringing.  Once Zimbabwe drops off the news the prices will probably drop as well.

[bsshog40]

Well I put my 2 notes up on ebay and 24 hrs later the bids are already up to $127.50 right now. I would say that is quite an increase from when I paid less than $5 for both of them a few years ago. 

[physics-fan3.14]

That seems like quite a price jump! 

I'm wondering if people think that they can actually use these? If I recall correctly, the currency has been devalued a few times since those notes came out. I'm guessing with Mugabe's resignation, and a new government, they'll probably hit the reset button on the economy again in the near future. 

[bsshog40]

Yea seems strange to me also. No way these things are gonna be worth what they are selling for now. Even when they were first printed for use, I don't think they had that much value. 

[Conder101]

They hit the reset button a few years ago, I believe less than a year after the 100 trillion was printed.  The Zimbabwe dollar was declared worthless and they began accepting three foreign currencies as legal tender in the country.  One was the US dollar, one was the South African Rand, and I forget what the third one was. (So today the 100 trillion dollar note can't even be spent in Zimbabwe.)  At one time they actually shipped in US dollar and coinage.  About two years ago they once again issued "Bond coins" of low denominations.  Those coins were backed by a cash reserve of US dollar backed bonds.  (The government had to turn the bonds over to a third party before the mint making the coins for them would turn over the coins.  That kept the government from issuing more coins than they had backing for.)

[physics-fan3.14]

So it was a fiat currency based on a fiat currency? 

Yeesh, that's as bad as tranches and credit default swaps! 

[Conder101]

Yes but it was based on a "stronger" fiat currency than the home country possessed.

[Joydeep]

Spoiler

I didn't know we had trillionaires amongst our ranks . I guess you made more profit on average per bill than the government of Zimbabwe.