$25 Billion For A Loaf of Bread

After launching their 100 billion note in July 2008 and $50 billion banknote just last weekend (11-12 Jan 2009), the Zimbabwean government will be introducing their 100 trillion Zimbabwe dollar note soon. Zimbabwe has been trying to lift the burden of their desparate cash shortage. Z$100 billion is equal to US$33 in the black market. Due to incredibly high inflation the Reserve Bank of Zimbabwe is still planning to launch a Z$10 trillion, Z$20 trillion and Z$50 trillion notes in the near future.

Zimbabwe has been issuing new banknotes the past few years hoping to overcome the cash crunch they are facing today. Zimbabweans have to queue for hours to withdraw money that is not even enough for them to buy a loaf of bread. In Zimbabwe all prices doubles almost everyday. Bread and fuel are in short supply. With the inflation reaching 231 million percent annually, the price of a loaf of bread rose from Z$200,000 in 2008 to Z$25 billion in Jan 2009. Z$25 billion is equal to US$1 today. The minimum wages in June 2008 is Z$100 billion per month which can only buy them 4 loaves of bread in a month, and nothing else.

Only 40% of the 5 million Zimbabwean population are receiving food aid. The world donors expect this number to grow but unfortunately due to the rising cholera epidemic that has claimed 2,200 lives, some money from the funding is diverted to fight the epidemic.

If you are moved by this post, consider donating a few bucks you would use for a starbuck cup of coffee. Your US$1 donation can buy one loaf of bread for a family.

To make a donation, go to the website of the United Nations World Food Programme by clicking here .