The exchange rate between Zimbabwe's local currency and the US Dollar is currently 110 Billion:1, give or take a few zeroes. This complete collapse in confidence surrounding the currency is redolent of post-war Germany, when a wheelbarrow full of Deutsch Mark was required to buy a loaf of bread. The same hyperinflation, estimated at 100,000,000% on an annualized basis, has gripped Zimbabwe, causing prices to skyrocket and the local currency to plummet. As a result, the Central Bank has announced a plan to redenominate the currency by removing 10 zeroes from notes currently in circulation. Analysts agree, however, that this move is merely symbolic, and unless the Central Bank comes up with a comprehensive plan to fight inflation, they may have to repeat the re-denomination process later this year. Voice of America News reports:
Economist John Robertson agreed the zeros will soon be back on notes without a concerted effort to tackle the root causes of hyperinflation. Journalist Jonah Nyoni commented that what needs to be removed is not the zeroes from the currency but the leadership of the country.
Read More: Zimbabwe's Central Bank Snips 10 Zeros In Currency Redenomination
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