Zimbabwe’s 100 trillion dollar note, once a symbol of economic turmoil, has transformed into a collector's item of remarkable value. Printed during a period of extreme hyperinflation that peaked in 2009, this note boasts the most zeroes of any legal tender in recorded history. At its nadir, a single note could not even pay for a bus fare, yet today, its value on markets like eBay has soared, with notes selling for as much as £40 each.
The Zimbabwean dollar was introduced in 1980, initially holding a value comparable to the US dollar. However, by 2009, the currency had plummeted dramatically. A staggering inflation rate of 79.6 billion percent in Zimbabwe dwarfed the Bank of England's concerns over inflation exceeding 2% annually. This economic crisis rendered the Zimbabwean dollar nearly worthless, with $1 equating to Z$2,621,984,228,675,650,147,435,579,309,984,228. Consequently, the government discontinued the currency in 2009, opting instead to use the US dollar and the South African rand.
A limited number of the 100 trillion dollar notes were printed during their brief circulation in 2009 before the Zimbabwean dollar was entirely abandoned. These notes have since become coveted collector's items. In 2011, Vishal Wolstencroft acquired a batch for £1.50 each. By 2020, their value had increased significantly to £20-£25 per note, reflecting a substantial return on investment.
“I always found they were a good conversation starter,” said John Wolstencroft.
Wolstencroft noted the scarcity of these notes when they first emerged in the market.
“I didn’t have enough notes to go round,” he remarked.
This scarcity has contributed to their rising value as collectors seek these unique items.
Frank Templeton, a retired Wall Street equities trader, also capitalized on this unique opportunity. He purchased "quintillions of Zimbabwe dollars"—thousands of trillions—through a broker connected to the Zimbabwe central bank for just $1 to $2 each. Templeton's foresight in acquiring these notes exemplifies how currency that once held little practical value can become a lucrative investment.
Despite the historical hyperinflation, Zimbabwe now faces among the world's worst deflation rates at -2.3%. This stark contrast highlights the country's ongoing economic struggles and the challenges it faces in stabilizing its financial system.
The rise in value of Zimbabwe's 100 trillion dollar note underscores a broader economic principle.
“Over the long term, cash loses its value,” John Wolstencroft stated.
This observation rings especially true in cases of extreme inflation or deflation where currency can rapidly lose or gain perceived worth based on market dynamics and collector interest.