The 175 quadrillion dollar (Investment Insight)

By Richard Dunbar, Investment Solutions, Aberdeen Asset Management

For the past few years, I’ve had on my desk a 10 trillion dollar note from Zimbabwe. I’ve used it in presentations, along with notes with similar numbers of zeros from Germany in the 1920s, to demonstrate what debasement of a currency really looks like.

Sadly, this week heralds the end of the Zimbabwe dollar. The Reserve Bank of Zimbabwe has announced that it is beginning the process of ‘demonitising’ the currency. In using the 10 trillion dollar note to make a point, little did I realise how much worse things could get: the Reserve Bank will pay a flat five US dollars for Zimbabwe dollar balances between zero and 175 quadrillion dollars. This is currency debasement on a scale that makes the Weimar Republic look like the gold standard of monetary probity.

Newsletter

News and expert analysis straight to your inbox

Sign up
Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com