Zimbabwe dollar officially disappears

I wrote about the Zimbabwe dollar a few months ago because I think this is the kind of live experiments that have already happened in the past many times (Argentina and the Weimar Republic being the last ones I can think of) and interestingly, the US and UK Central Banks seem to be taking Zimbabwe's central bankers as mentors. So it's interesting to follow what happens there to get a grasp of what we might get here...

• Zimbabwe - inflation hits 15 000 000% and new currency
• Zimbabwe to introduce 100 bln dollar bank note

So it is likely that the government and central bank of Zimbabwe have decided to give up their worthless paper and admit the reality: foreign currencies and black market had taken over the white market and the local currency. Let's be realistic: there's no way they can bring back their dollar in one year if they do not completely build from ground up the government and central bank...

Here's the news from AFP:

HARARE (AFP) — The Zimbabwean government has decided to suspend the country's national currency for a year, which has in fact already disappeared from circulation, state-run media reported Sunday.

"The Zimbabwe dollar will be out for at least a year ....because there is nothing to support and hold its value," Economic Planning Minister Elton Mangoma told the Sunday Mail.

In January, in response to unprecedented hyperinflation, Zimbabwe legalised the use of foreign currencies including the Botswana pula, the South African rand, the United States dollar, the Euro and the British pound. The Zimbabwe dollar immediately went out of circulation.

In the past two years Zimbabwe's central bank knocked 22 zeros off the local currency as the country's economy plunged info freefall.

The highest note previously in circulation, a 10 trillion Zimbabwe dollar note, was not even enough to buy a loaf of bread.

Prime Minister Morgan Tsvangirai, who joined his long-time rival President Robert Mugabe in a power-sharing government, has prioritised rebuilding the shattered economy since taking office in February.