The country where everyone is a millionaire, but no one is rich

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Imagine living in a country where your bank account has millions, yet you can barely afford daily necessities.

In 2008, Zimbabwe’s currency became so devalued that even basic items cost millions or billions of Zimbabwean dollars, making every citizen a “millionaire” but not in the way most people dream of.

It sounds like a paradox, but for the people of Zimbabwe, this was a harsh reality during one of the worst periods of hyperinflation in history. Hyperinflation occurs when a country’s currency rapidly loses its value, causing prices to skyrocket at an uncontrollable rate.

Zimbabwe’s crisis began in the early 2000s after political and economic instability led to severe financial mismanagement. By 2008, inflation had reached 89.7 sextillion percent (89,700,000,000,000,000,000,000%), making the Zimbabwean dollar practically worthless.

To keep up with rising prices, the government printed increasingly large denominations of money, including a 100 trillion Zimbabwean dollar note which was barely enough to buy a loaf of bread. People had to carry bags of cash just to buy basic groceries, and businesses stopped accepting the local currency, demanding payments in foreign money instead.

While Zimbabweans technically had millions in their accounts, their purchasing power had disappeared. A salary of 10 million Zimbabwean dollars could be worth a full month’s wage one day and be worthless the next. Prices changed so quickly that restaurants stopped printing menus, instead listing prices on chalkboards that they updated multiple times a day.

Banks placed strict withdrawal limits, meaning even if someone had billions in their account, they could only withdraw small amounts at a time—often too little to buy basic necessities. Bartering and trading foreign currency became common, as the Zimbabwean dollar lost its relevance.

The Collapse of the Zimbabwean Dollar

In 2009, after inflation had completely destroyed confidence in the local currency, Zimbabwe abandoned its dollar and officially switched to a multi-currency system, where people used US dollars,

South African rand, and other foreign currencies instead. The once-trillionaire citizens of Zimbabwe had to start over with a new financial system.

The Zimbabwean hyperinflation crisis remains one of the most extreme examples of economic mismanagement.

The Current State of Zimbabwe’s Economy in 2025

As of February 2025, Zimbabwe’s economy is on a path to recovery following recent challenges. The World Bank projects a growth rate of 6% for 2025, a significant increase from the 2% growth experienced in 2024. This optimistic outlook is primarily attributed to anticipated improvements in agriculture, mining, and services sectors.

Zimbabwe is also undergoing a significant currency transition. In April 2024, the government introduced the gold-backed Zimbabwe Gold (ZiG) currency, aiming to reduce reliance on the U.S. dollar and stabilize the economy.

Despite the government’s efforts to promote the ZiG, the U.S. dollar remains prevalent in daily transactions. Reports indicate that over 80% of economic activities are conducted in U.S. dollars, reflecting public skepticism toward the new currency.

Nonetheless, the Reserve Bank of Zimbabwe (RBZ) has announced plans to phase out the U.S. dollar by 2030, making the ZiG the sole legal tender. This transition aims to establish monetary sovereignty and economic stability.