How do Zimbabwe's and Venezuela's hyperinflations compare?

Economists usually call it hyperinflation when prices rise more than 50 percent in a single month. Both countries crossed that line, about eight years apart, and both left a trail of ever-bigger banknotes behind them. Here are the two side by side.

Why was Zimbabwe's hyperinflation so much faster?

Because it compounded by the day. At a monthly rate of 79.6 billion percent, prices in Zimbabwe were doubling roughly every 24 hours in November 2008. The government's own statisticians had already recorded 231 million percent a year in July 2008, the last annual figure it published, up from 11.2 million percent only a month earlier.

You can watch the speed in the notes themselves. The Reserve Bank of Zimbabwe moved from the bearer cheques it began issuing in 2003 to special agro cheques worth up to Z$100 billion in 2008, removed ten zeros that August, and was printing trillions again within months. On May 15, 2008, the central bank introduced a Z$500 million note that was worth about US$2 on the day it appeared.

Zimbabwe's crisis was a sprint measured in hours. Venezuela's was a marathon measured in years.

Why did Venezuela's hyperinflation last so long?

Venezuela's prices never compounded the way Zimbabwe's did, so the crisis ground on instead of burning out. Steve Hanke of the Cato Institute dated its start to November 2016. The Central Bank of Venezuela's own annual figures trace the arc:

The last month above 50 percent was December 2020, when prices rose 77.5 percent. Once December 2021 came in at 7.6 percent, Venezuela had completed twelve straight months under the line, and in January 2022 the hyperinflation was declared over. Rather than abandon the bolívar the way Zimbabwe abandoned its dollar, Venezuela cut zeros twice more, in 2018 and 2021, while US dollars quietly took over daily commerce. Our guide to the fuerte, soberano and digital series walks through each family of notes.

Which country printed the bigger banknote?

On face value, Zimbabwe wins easily. Its 100 trillion dollar note carries 14 zeros. Venezuela's largest, the 1,000,000 bolívares soberanos announced on March 5, 2021, carries six, and it was worth about 52 US cents at the official rate when it arrived.

Count the zeros each country had already removed, though, and the gap looks different. By our arithmetic, one 1,000,000-bolívar soberano note equals 100 trillion of the bolívares Venezuela used before 2008, the same figure printed on Zimbabwe's flagship. Run the same exercise on Zimbabwe and its 100 trillion note equals 10²⁷ of the dollars it used before 2006: one octillion.

What happened to each currency afterward?

Zimbabwe spent most of the next decade on other countries' money. The old Zimbabwe dollar was formally demonetized in 2015, bond notes followed in 2016, and in April 2024 the country launched the gold-backed ZiG. Our post on the road from the 100 trillion to the ZiG covers each step.

Venezuela launched the bolívar digital on October 1, 2021, six zeros lighter than the soberano. Despite the name, it is a paper currency, and the series has since grown to include 200 and 500 bolívar notes.

Which notes tell each story best?

For Zimbabwe, a short run covers the whole arc: a 2003 bearer cheque, a 2008 note from the third dollar such as the 500 million, the 2008 special agro cheques, and the Trillion Series, with the 50 trillion and 100 trillion at the top. For Venezuela, the 2020 soberanos (200,000, 500,000 and 1,000,000) show the crisis at its height, and the digitales show the reset that followed. Put the two runs next to each other and you can read the same story told twice, eight years apart.

Frequently Asked Questions

Which hyperinflation was worse, Zimbabwe or Venezuela?

Zimbabwe's was far more intense, peaking at about 79.6 billion percent in a single month in November 2008. Venezuela's was far longer, running from late 2016 until monthly inflation finally stayed under 50 percent through 2021.

How many zeros did Zimbabwe remove from its currency?

Twenty-five, in three redenominations: three zeros on August 1, 2006, ten on August 1, 2008 and twelve on February 2, 2009.

How many zeros did Venezuela remove from the bolívar?

Fourteen: three in 2008 (the bolívar fuerte), five in 2018 (the bolívar soberano) and six in 2021 (the bolívar digital).

When did Venezuela's hyperinflation end?

December 2021 completed twelve straight months of inflation below 50 percent a month, and the central bank's data confirming it was published in January 2022. The last month above the line was December 2020, at 77.5 percent.

What is the largest banknote Venezuela ever issued?

By face value, the 1,000,000 bolívares soberanos note, which began circulating on March 8, 2021. By our arithmetic it equals 100 trillion of the bolívares used before 2008.

Can you still spend a Zimbabwe 100 trillion dollar note?

No. Zimbabwe stopped using its own dollar in April 2009 and formally demonetized it in 2015. Today the note is a collectible and a piece of monetary history.