Gradually, Then Suddenly
ZIM33, 2006, 0.01 ZWN

Slot Comment:

2nd Dollar Emergency Bearer Check AA Prefix - $0.01 [Fractional]

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Note Details

  

Set Details
Note Description: 1 Cent 2006 - Wmk: Zimbabwe Bird
Grade: 66 EPQ
Country: Zimbabwe
Note Number: ZIM33
Signatures/
Vignettes: 		- Sign. #8
Certification #: 8046910-076
Owner: Revenant
Set Category: World
Set Name: Gradually, Then Suddenly
Slot Name: ZIM33, 2006, 0.01 ZWN
Research: See PMG's Census Report for this Note

Owner's Description

In October 2005 the Reserve Bank of Zimbabwe announced that a redenomination would occur. In August 2006, with increasingly severe hyperinflation, the government took off 3 "zeroes" or decimal places on the currency and introduced the "second Zimbabwean dollar," (currency code: ZWN).

In August 2006, it already took ZWN$650 to equal US$1. Only 23 years after it had parity with the US dollar, it would have taken ZWD$650,000 to equal US$1 when the first dollar was retired / discontinued. By February 2007, when the third dollar was announced, US$1 was equal to ZWN$7,500. By July 2008, when the third dollar began to replace the 2nd dollar, US$1 was equal to ZWN$758,530,000,000.

There were no regular banknotes issued for the 2nd dollar, only emergency traveler's checks, bearer's checks and agro-checks. But the 2nd dollar had an extremely short life. The third dollar was announced almost immediately.

The short life of the 2nd dollar and the rapid introduction of the 3rd dollar is the main reason there's only these "checks" for the 2nd dollar and no "banknotes." The 2nd dollar checks and the 1st redenomination were the first phase of "Operation Sunrise" - a program that was supposed to help stop the inflation. The 2007 dated series of 3rd dollar notes - designed in late 2006 - were supposed to be released as the 2nd phase of Operation Sunrise.

Operation Sunrise required people to surrender their old (1st dollar) notes to Zimbabwe's Reserve Bank within three weeks. Poor communication meant people in the rural areas were unaware of the plan, while urban dwellers battled long queues. It was illegal to carry more than Z$100 million in old (1st) dollars and roadblocks manned by ZANU-PF's youth militia, also known as "Green Bombers", searched "unpatriotic" Zimbabweans, many of whom were carrying their old dollars to exchange at the bank, and confiscated any excess money.

Operation Sunrise obviously failed. How they thought simply lopping off 3 zeros and doing nothing else would stop the inflation - or even slow it down - is a bit of a head-scratcher in the first place. When Operation Sunrise failed it was abandoned but the 2007-dated banknotes were still used after the 2nd redenomination.

The 2006 bearer check series was put into circulation on 1 August 2006 and initially consisted of 14 denominations, ranging from 1ยข to $100 000. The checks were signed by Dr. Gideon Gono and were set to expire on 31 July 2007 - except for the $100 and $500 checks, which were initially due to expire on 31 December 2007, but later extended to 31 July 2008. A $5 denomination was also issued, despite not being widely publicized in the changeover campaign. The series ultimately included a total of 28 denominations and face values maxed out with the $500 Million note (ZIM60).The face values of the original 14 issues ranged over 7 orders of magnitude. The final 28 note series has face values that range over 10 orders of magnitude. The 2nd dollar notes, if the Special Agro Checks are included, spanned 13 orders of magnitude with their face values.

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