Undoubtedly inflation has a negative impact on a lot
of countries; some states are able to maintain a stable low rate of inflation,
while others (like Zimbabwe)
register a real downfall.
Zimbabwe
Today the inflation in Zimbabwe outruns 100,000 percent.
The country's government had to introduce the new 10,000,000 Zimbabwe dollar banknote, which is number one
among the world's worthless money list. Currently the banknote has a value
lower than $4.
The article in nytimes.com
reports that a roll of toilet paper in Zimbabwe costs $145,750, which is
about 69 American cents. Currently the smallest
banknote in circulation is the $500 bill.
People consider such things as tea, meat and bread as something highly
exclusive. The country registers an annual
inflation that might be compared to the inflation in the war regions. The
rate of unemployment in Zimbabwe
goes over 80%, which is definitely the highest in the world.
Vietnam
The currency of Vietnam is "dong." The value of the biggest banknote in the country
(500,000) is $31.37. Starting with the early 1980 the embargo of the United States
stopped the exports from Vietnam,
which lead to price controls and an abundance of dongs printed in the country.
Indonesia
The country's 100,000-rupiah note is currently worth $11.05. Due to the financial crisis,
that struck Asian back in 1997, the Indonesian rupiah depreciated by 80% in
just a few months. After the revolts rose in Jakarta, President
Suharto had to clear his post after ruling the country for 32 years.
Iran
Iran's banknote with the highest denomination is the
50,000 rial, which is currently
worth $5.35. After the revolution that took place in the country back in 1979, Iran's
inflation rate varied around 15%. The continuously rising prices for oil had
their impact on the country's inflation rate as well.
Sao Tome and
Principe
This is a small island nation located in Africa, and
namely in the Gulf of Guinea.
The country is composed of two islands called: Sao Tome and Principe. The
country's currency is entitled "dobra"
and it most valued banknote is the 50,000 dobra note, which is worth about
$3.47. The country exports mainly cocoa and thus Sao Tome and Principe is bound to highly unstable price of this
good.
Guinea
This is another African nation that features in the
list, having its 10,000 franc banknote
valued at approximately $2.33. The country is rich in minerals; it possesses
more than 25 billion tons of bauxite.
Besides it has over 4 million tons of high-quality
iron ore, huge diamond and gold deposits. In addition, Guinea
possesses an uncalculated amount of uranium.
The investment possibilities are huge, but there are also huge barriers created
by the country's weakly developed infrastructure and high level of corruption. Guinea's
government declined the proposal made by the International Monetary Fund to apply reforms. When foreign currency
dried up the Banque Centrale de la
Republique de Guinee issued too much money.
Via: http://www.portfolio.com/
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