A million in Zimbabwe adds up to one U.S. dollar
The frenzy to buy hard currencies in Zimbabwe’s struggling economy pushed the exchange rate for the U.S. dollar as high as a million Zimbabwean dollars on the black market Thursday, dealers said.
The new rate, a halving of the Zimbabwe currency’s value in just 10 days, came as the government of this southern African country announced another surge in the inflation rate, already the highest in the world.
The state central statistical office said September’s inflation heated up to an annual rate of 7,982 percent — meaning an eightyfold jump in prices over a year. The official rate was 6,592 percent in August, but independent estimates put real inflation closer to 25,000 percent.
Demand for foreign currency is soaring as people scramble to acquire cash that they can use in neighboring nations to buy cooking oil, soap and other basic goods that are increasingly hard to find in Zimbabwe.
Currency dealers said the central bank has added to the pressure by also buying on the black market, because the government needs hard currencies to pay for imports of food, electricity and gasoline.
The result is a big jump in the U.S. dollar’s exchange rate against the Zimbabwe dollar.
posted by Morgan at 6:30 am Off