This listing is for the photographed 1980 Zimbabwe 2 Dollar bank note. Printed and issued in Salisbury by the Reserve Bank of Zimbabwe. This was the first issue of this note after Zimbabwe was internationally recognized as an independent nation. Very interesting piece of history that is not commonly seen! Lower denominations of Zimbabwe paper currency were not circulated after the hyperinflation period of 2007-2009. Pick# 1a (Pick Number 1a).
Zimbabwe was officially recognized as an independent nation in 1980. Prior to this they declared themselves independent from British Colonial Rule as Rhodesia, but the country was never internationally recognized. After 15 years of war, an agreement was made in 1979 to transition the country to a majority rule, officially recognizing it as an independent nation under the name Zimbabwe. The capital of the nation was known as Salisbury, until the Mugabe government changed the name to Harabe in 1982, making this note a rarer find. This note was printed in the immediate aftermath of the nation's independence, as Zimbabwe was beginning to establish their own economy. This note was demonetized in 2006, as the country started to experience extreme inflation.
Starting in 2007, Zimbabwe experienced an extreme period of hyperinflation, causing high denominations of their currency to be issued. Within one year, emergency currency ranged from 10 dollars to 100 billion dollars. The inflation reached nearly 25,000% during the height of the crisis. Much of the middle class fled as the hyperinflation started, removing a large amount of the country's capital, causing unemployment rates to rise to 80%, with food production and manufacturing rates decreasing by nearly half. The Reserve Bank of Zimbabwe blamed the hyperinflation on the economic sanctions imposed by the U.S., the IMF, and the European Union, which restricted trade and froze the assets of many involved in the Mugabe regime. The printing of money to finance Zimbabwe's involvement in the Second Congo War and their under-reporting of the spending to the IMF is also argued to be a cause of the hyperinflation by economists. In 2009 the country stopped printing their own paper money, instead using those of other countries, the majority being the U.S. dollar. This decision led to the decrease in inflation rates over the next 4 years. The Zimbabwe government decided to reintroduce their own currency in 2019, with another rise in inflation occurring shortly after the switch, reaching 557.2% in 2020. As of June 2024, Zimbabwe has an inflation rate of 33.6%.
Extremely interesting and rare piece of economic history, great find!
Thanks for stopping by!
1980 Zimbabwe 2 Dollar Banknote - Salisbury, First Independant Issue - Reserve Bank of Zimbabwe - 1980 Zimbabwe Two Dollar Note 1980 - P#1a