One US Dollar = 35 Quadrillion Zimbabwean Dollars

On Friday, the Central Bank of Zimbabwe valued the national currency of the country against the US dollar, stating that 35 quadrillion Zimbabwean dollars (each quadrillion equals one thousand trillion) is equivalent to one US dollar. According to Reuters, the exchange of Zimbabwean dollars for US dollars or South African rand will begin next Monday, coinciding with the withdrawal of the national currency from circulation. Zimbabwe is a country in southern Africa that has experienced the highest inflation rates in the world in recent years. After a severe drop in the value of their currency in 2009, the people of Zimbabwe replaced the Zimbabwean dollar with other currencies, including the US dollar and South African rand, for daily transactions. Currently, the value of 12.5 South African rand is equivalent to one US dollar. The value of the Zimbabwean dollar reached its lowest point in 2008, when 500 billion Zimbabwean dollars equaled one US cent. During the peak of the country's economic crisis, Zimbabweans had to carry large plastic bags filled with banknotes to buy basic necessities, while prices of goods rose at least twice a day. According to Reuters, John Mangudya, the governor of the Central Bank of Zimbabwe, announced on Friday that customers who had a Zimbabwean dollar bank account in one of the banks in the country before March 2009 could visit bank branches starting Monday to convert their savings into US dollars. According to this announcement, the people of Zimbabwe have until September to convert old banknotes, and some are selling them as souvenirs to foreign tourists. Based on the announced exchange rate, accounts with balances up to 175 trillion Zimbabwean dollars will receive five US dollars. The highest denomination banknote printed by the Central Bank of Zimbabwe in 2008, during the peak of the economic crisis, was a one hundred trillion dollar note, which was not even enough to cover a week's bus fare. Zimbabwe's inflation rate reached 231 million percent in 2008, a phenomenon referred to in economic literature as 'hyperinflation.' Economist Steve Hanke, an economic advisor to former US President Ronald Reagan, estimated the highest hyperinflation rate in Zimbabwe at 89.7 sextillion (10 to the power of 21) percent. The government and central bank of this African country managed to stabilize its economy over a decade by adopting a multi-currency system. According to the Central Bank of Zimbabwe, the inflation rate in 2014 was reported to be 0.2 percent. In April 2015, the inflation rate turned negative, reaching -2.7 percent. The Central Bank of Zimbabwe has allocated 20 million US dollars for the operation of converting the country's old banknotes.