Barely a month ago, Zimbabwe made history by printing 10 million zimbabwean dollar notes to ease its cash crises. Bagfuls of cash were needed to purchase basic necessities with extreme price rises in the country’s uninterrupted hyperinflation… Inflation rates have soared yet again.
Barely a month ago, Zimbabwe made history by printing 10 million zimbabwean dollar notes to ease its cash crises. Bagfuls of cash were needed to purchase basic necessities with extreme price rises in the country’s uninterrupted hyperinflation … Inflation rates have soared yet again.
Current (or not so current) inflation rate in Zimbabwe stands at an astounding record of 240,1%. Last year the statistics department said it was impossible to accurately work out the country’s inflation rate because of the paucity of goods. The introduction if Z$250,000, Z$500,000 and Z$250,000 last December did not resolve the lack of the widespread cashflow. Economists said that the central bank needed to scale up note values, which lead to the introduction of Z$10 million bills. Black market exchange rate is estimated at over Z$7 million to US$1.
The government price freeze in attempts to slow inflation last June proved futile in curbing the mounting inflation trend. The country registers about an 80% unemployment rate and is suffering from unprecedented shortages in basic necessities including, food and fuel.
This has stirred poverty and contributed to an estimated three million Zimbabweans fleeing to neighbouring South Africa. There are high levels malnutrition among children whilst falling health care standards have contributed to a reduction of life expectancy rates.
Blaming the situation on the weather, imperialists, market conditions, etc, President Mugabe and his government (and not his people per se) attracted economic sanctions from both the United States and the European Union…“This action is aimed not at the people of Zimbabwe, but rather at those most responsible for their current plight. The US is acutely aware of the hardships and frustrations which the Zimbabwean people are enduring.”
This trend might continue if Mugabe –in power since independence from Briatain in 1980- wins the country’s next general elections scheduled for March 29, 2008.