Zim's Ferrari currency

African Business, Feb, 2003

Zimbabwe's biggest denomination note, the red Z$500 bill, is being spent so fast that it has become known as the "Ferrari". Inflation at 140% forecast to rise to 500% this year, an acute shortage of hard currency and the closure of bureaux de change has sent the Zimbabwe dollar into free-fall with a single US$ fetching over Z$2,000 on the black market against the official exchange rate of Z$55.

Currency-counting machines are in hot demand by restaurateurs who are paid with thick wads of bills, and property agents who receive cash deposits loaded into suitcases and car boots. "The rate changes hourly," says one informal currency trader. The introduction of a Z$l,000 note later this year is not expected to ease the rapidly escalating situation.