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| Africa Subsaharan | |
| Zimbabwe inflation hits world record | |
| 2007-04-27 | |
(SomaliNet) Inflation in Zimbabwe reached a record 2,200% in March amid a deepening economic and political crisis. This is the highest rate in the world. Zimbabweans spend any money they have as soon as they can, before prices rise even higher.
Central bank Governor Gideon Gono said the official exchange rate would remain 250 Zimbabwe dollars to US$1. But he announced a new rate of Z$15,000 for some exporters, international organizations, gold miners, tobacco farmers and remittances from expatriates. Analysts say this amounts to an effective 60-fold devaluation but Mr Gono denied this. "We have not devalued the dollar but sought ways to enhance the viability of foreign currency generators in a sector specific way," he said. Analysts say Mr Gono is trying to bring more foreign currency into the official economy instead of the black market, where the rate is Z$25,000 to $1. Exporters claim their businesses have been devastated by this skewed exchange rate. Mr. Gono earlier that month said Zimbabwe was suffering from "economic HIV". | |
| Posted by:Steve White |