Posted on 04/27/2007 11:29:40 PM PDT by B-Chan
ZIMBABWE'S annual inflation jumped to a record 2,200 percent in March, central bank Governor Gideon Gono said on Thursday as the country's economic and political crisis deepened.
He dismissed calls to devalue the Zimbabwean currency, saying it would remain at its official peg of 250 to the U.S. dollar -- almost 100 times less than the black market rate -- although he said the bank would buy foreign exchange at a new rate to help build a "drought stabilisation fund".
Zimbabwe, once the breadbasket of southern Africa, is crippled by foreign currency and fuel shortages, unemployment of over 80 percent and the highest rate of inflation in the world.
"Year-on-year inflation, which stood at 1,072.2 percent in October last year, rose to 1,281.1 in December and has risen to 2,200 percent by March," Gono said in a televised statement.
"Both food and non-food inflation contributed to the inflation spiral."
The rate of increase in February was 1,729.9 percent.
Gono made his interim monetary policy statement two months ahead of schedule in an attempt to tackle the crisis, widely blamed on President Robert Mugabe's policies.
The government has responded to a series of strikes and political protests since the beginning of the year with a violent crackdown on political opponents.
The central bank governor said the overnight secured interest rate would rise to 600 percent from 500 percent previously. The unsecured rate would rise to 700 percent from 600 percent.
On the exchange rate, he said: "There is not going to be an exchange rate movement from 250 to the U.S. dollar. There is no devaluation."
However, he indirectly revalued the Zimbabwe dollar to an effective rate of Z$15,000 to the U.S. currency by offering a new rate for central bank purchases of foreign currency for the new drought stabilisation fund.
The country's exporters, mainly miners and tobacco farmers, have protested that the skewed exchange rate has devastated their businesses.
The March inflation data had been due for release earlier this month but Zimbabwe's state statistics agency delayed publication, saying it was still working on the figures.
May Mugabe’s spirochetes get off their asses and finish the job.
What can we do to help?
Rectify Mugabe's copper and lead deficiency...
Doing their best to phrase it as someone else's fault. Foreign currency isn't the villain. Fuel isn't the villain. The villain is the ZANU thugs who have spent 25 years tearing down civilization.
Yep, ran the country into the ground, but Third World countries can never be balemd for their own misfortune to the PC crowd.
Is that “hyper-inflation”?
And coming to South African soon. Just as soon as they get the farms out of those evil (white) people’s hands.
Stop the madness! Quit flushing money down the rat hole called Africa.
I’m glad they had plenty to eat.
Zimbabwe, once the breadbasket of southern Africa, is crippled by foreign currency and fuel shortages, unemployment of over 80 percent and the highest rate of inflation in the world.
“We’re right on track” - Central bank Governor Gideon Gono said on Thursday.
Both food and non-food inflation contributed to the inflation spiral. The rate of increase in February was 1,729.9 percent.
“Everything is hunky-dory” he said. “Let’s break for lunch. This policy meeting is exhausting!. Besides, if we wait too much longer in the afternoon, we might not be able to afford lunch.”
africa wins again...
Print more money.
There was once a beautiful country,Rhodesia, which was the victim of liberal socialist worldwide rantings. Wake up America!!! It could happen here,especially if we get another 8 years of RAT rule.
Mugacountry is selling it off to the PRC.
The Zimbabwe dollar has become meaningless. With this kind of inflation, the economy effectively becomes a barter economy.
A couple of years ago, while waiting in a mall for the XYL to finish her shopping, out of boredom I went to Thomas Cook currency exchange booth and inquired about the value of the Zimbabwe dollar. The clerk started to giggle and could barely stop giggling to tell me that Cook does not trade in Zim dollars under any circumstance, no matter what the tender might be. In her mind the Zim dollar was simply not a currency.
Recall that in 2000, Only 7 years ago) just as the violent confiscations of the commercial farms were beginning, the Zim dollar was trading at a reasonably stable Z$55.00 to US$1.00, Zim was the breadbasket of southern Africa and the Zim dollar was backed up by one of the most viable economies in sub-Saharan Africa.
Africa Wins Again.
I was being sarcastic...I remember the articles about them not having enough money to buy paper and ink to print more money...pathetic.
Hey, waidaminnud...I get an unsecured loan at 600% in an inflationary zone of 2200%? Hotcha! Sign me up!
Of course, there is one little problem - cashing out. By the time you get your obscene profits to the door of the bank they won't buy you a candy bar.
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