HARARE , Zimbabwe ( CNN ) -- Zimbabwe slashed 12 zeros from its currency as hyperinflation continued to erode its value , the country 's central bank announced Monday . Patrick Chinamasa , Zimbabwe 's acting finance minister , arrives last week at Parliament to present the '09 budget . `` Even in the face of current economic and political challenges confronting the economy , the Zimbabwe dollar ought to and must remain the nation 's currency , so as to safeguard our national identity and sovereignty . ... Our national currency is a fundamental economic pillar of our sovereignty , '' said Gideon Gono , governor of the Reserve Bank of Zimbabwe . `` Accordingly , therefore , this monetary policy statement unveils yet another necessary program of revaluing our local currency , through the removal of 12 zeros with immediate effect . '' The move means that 1 trillion in Zimbabwe dollars now will be equivalent to one Zimbabwe dollar . The old notes -- with the highest being 100 trillion dollars -- not enough to buy a loaf of bread -- will remain valid until June 30 , after which they will cease to be legal tender . One U.S. dollar is trading above 300 trillion Zimbabwe dollars . This third attempt to lop off zeros comes barely six months after the Zimbabwe government last adjusted its currency as it continues to lose value . World-record inflation estimated to be in the billions of percent -- but officially at 231 million percent as of July last year -- has quickly eroded the currency 's value again and again . The highest note on the new set is 500 Zimbabwe dollars . Many Zimbabwean traders have stopped accepting the local currency , preferring foreign currency due to the hyperinflationary environment . Last week , the country 's acting finance minister , Patrick Chinamasa , allowed the use of foreign currency by everyone else . Despite the use of foreign currency , the Zimbabwe dollars are in acute shortage , resulting in many people sleeping outside their banks hoping to get money the following day . Regarding the cash shortages , Gono blamed Germany for dropping a contract that helped the country print money . `` The country has suffered bouts of cash shortages , which have disadvantaged both the corporate and household sectors , '' he said . `` As a country , we have come to terms with this stubborn reality that we were put under economic sanctions by Germany , which unilaterally cut a 50-year-old contract to supply us with currency printing paper , machinery , spare parts and inks without notice in July last year . ''
One trillion in Zimbabwe dollars now will be equivalent to one Zimbabwe dollar . Zimbabwe 's inflation rate officially at 231 million percent as of last July . Many Zimbabwean traders have stopped accepting local currency . Acting finance minister recently allowed all Zimbabweans to use foreign currency .