ZIMBABWE
Rebooting the Printer
Facing a disastrous shortage of US dollars that has paralyzed its economy, Zimbabwe announced plans to re-introduce its own currency within the next 12 months.
Zimbabwe scrapped its currency in 2009 in response to runaway hyperinflation. But now it doesn’t have enough hard currency in the country to match the $10 billion of electronic funds trapped in local bank accounts, Reuters reported. The result has been acute shortages of imported goods, including fuel, and economic chaos that has forced many businesses to close.
On Sunday, the country increased fuel prices by 150 percentovernight, but most service stations still had no fuel to sell to motorists – who had been sleeping in their vehicles to keep their places in long lines.
With less than $400 million in actual cash in Zimbabwe, according to the central bank, physical notes are selling at a 370 percent premium on the black market, the agency said.
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