Back in 2007 on the NLPA Blog, I covered the early stages of hyperinflation in Zimbabwe and tied it into corporate procurement. I noted that a Zimbabwean purchasing manager shared with me that quotes would include language like “Quote is valid for now only” because sometimes prices double or triple overnight! I also documented that, at the time, the exchange rate was 250 ZWD per 1 US Dollar.
Since then, the economic situation in Zimbabwe went from insane to utterly unbelievable. Hyperinflation reportedly peaked in mid-November 2008 at 79.6 billion percent! Zimbabwe subsequently abandoned its currency altogether in 2009. Next month, Zimbabwe will adopt the US Dollar as its official currency.
The current exchange rate?
35,000,000,000,000,000 ZWD per 1 US Dollar!
Hopefully, this change will finally stabilize the Zimbabwean economy. And make procurement once again a desirable – or at least less insane – profession in that country.