For the second time in two years, Zimbabwe’s central bank is slashing zeros off its largely worthless currency. This time 10 zeros will go, making $10 billion equal to $1.

The central bank’s governor Gideon Gono chopped 10 zeros off the Zimbabwe dollar and reintroduded coins which have been obsolete for years.

The highest denomination of Zimbabwe currency is currently 100 billion.

After the currency announcement, President Robert Mugabe warned in a televised event Wednesday that he will declare a state of emergency if prices continue to rise.

Officially inflation is at 2.2 million percent, but private sector economists estimate it is at least five times higher. Prices double every few days.

The purchase of a small packet of cookies can easily cost 400 billion Zimbabwe dollars. Bread, when it is available, is about 200 billion dollars. A few every day items can cost trillions of dollars, and houses for sale are advertised in quadrillions.

Comparing costs with South African groceries, using a combination of official and black market rates, groceries in Zimbabwe are between three and four times the cost for the same goods in South Africa.

Mr. Mugabe’s warnings about price increases came as South African president Thabo Mbeki arrived in Harare to mediate talks between the Movement for Democratic Change and ZANU-PF.

Mr. Mbeki will meet Mr. Mugabe, whom the opposition Movement for Democratic Change, or MDC, has accused of stealing the election earlier this year. (more…)

THREE treasure hunters have unearthed 62 Roman coins which date back 1,700 years.

Adam Staples, Lisa Grace and her 14-year-old son, Tom Grace –- out with his metal detector for the first time – made the discovery on land near Stanton-by-Bridge.

The trio, from Derby, were scouring the soil when their equipment began to beep.

Mr Staples scooped up the earth and in his hands were the first of 62 ancient coins they would find over the next six days.

Yesterday, an inquest held at Derby Coroner’s Court decided they were treasure – which means they are more than 300 years old and contain less than 10% gold or silver.

The items must now be offered for sale to a museum at a price set by an independent board of antiquities experts. Only if a museum expresses no interest in the item, or is unable to purchase it, can the owner retain it.

The coins date back to the reign of four emperors, Diocletianus, Maximianus, Constantius and Galerius, who ruled Britain between 296AD and 305AD.

Ms Grace, 35, of Reeves Road, said: “We were so excited when we found the coins, absolutely ecstatic. We have found coins, ingots and other Roman pieces before but nothing as old as this.”

The haul was discovered between September 27 and October 3 last year. (more…)

By John Mackie, Vancouver Sun

A rare $5 banknote from the long-defunct Bank of Vancouver has sold for a record $28,750.

Marc Verret of C&P Numismatics in Quebec City auctioned the note at the Canadian Numismatic Association convention in Ottawa on July 18. It had belonged to an Alberta collector, who purchased it in an auction in the United States about 15 years ago. Verret declined to give the buyer’s or seller’s names, citing client confidentiality.

The Bank of Vancouver was launched in the midst of a real estate and industrial boom in 1910 by some of B.C.’s most prominent capitalists, including the lieutenant-governor, James Paterson, and future Vancouver mayor William Malkin, of Malkin Bowl fame. But the boom went bust, and the bank went out of business on Dec. 14, 1914.

The bank’s headquarters was in the Flack Block, a beautiful heritage building at Cambie and Hastings that recently underwent a $20-million restoration.

It issued $5, $10, $20, $50 and $100 banknotes, but only a handful remain, and they almost never come up for sale.

“I’ve only ever seen one Bank of Vancouver banknote in 25 years in the business,” said Brian Grant Duff of All Nations Coins and Stamps in Vancouver.

“In the past I’ve only ever been able to find [uncirculated] proof notes where archives had them, and they came to market. I’ve had good success with those, but I’ve never seen a real banknote [for sale].” (more…)