Zimbabwe’s economic instability is deepening, deterring international investment and eroding confidence in the local market.
The Zimbabwean government has announced measures to promote the wider use of the domestic currency (The Zimbabwean Dollar) in a last-ditch effort to save it from the re-dollarization onslaught. Part of the measures now compel businesses and individuals to pay customs and import duties in local ...
Zimbabwe dollarised in 2009 following the collapse of the domestic currency after inflation hit 500% in December 2008. But faced with foreign currency shortages and the growing gap between the greenback and local currency which officially traded at par with the US dollar, government reintroduced the...
He says the other piece that was already a factor during that time in Zimbabwe was high national debt. So, the reduction in ag production and a collapse in lending caused the economy to see sharp contraction. It also created turmoil with consumers’ trust in the government. “The obvious th...
For fear of a collapse of the U.S. financial system during the subprime mortgage crisis that stemmed from an earlier expansion of mortgage credit, the Emergency Economic Stabilization Act (EESA) signed into law on Oct. 3 by President George W. Bush. The act sought to restore liquidity to ...
For fear of a collapse of the U.S. financial system during the subprime mortgage crisis that stemmed from an earlier expansion of mortgage credit, the Emergency Economic Stabilization Act (EESA) signed into law on Oct. 3 by President George W. Bush. The act sought to restore liquidity to ...
Flabbergasted I stammered a ‘yes, how did you know?’ She said someone called her and had my wallet in their possession, and asked me to contact him. I explained I was about to run into an important meeting and couldn’t do it, but could she arrange somehow (in fact, I had to wa...
“I think Zimbabwe had a pure fiat currency. The medium of account was the Zimbabwe dollar note…” Here’s where I don’t follow you. Why not just say that there was no medium of account during the hyperinflation? The unit of account was Zim$, but it was undefined. ...
foreign creditorswere initially not repaid, bankers werejailed. The economy soon boomed, withGDP growthexceeding EU and eurozone averages and Iceland’s GDP eventually eclipsing pre-collapse levels. Meanwhile, a devalued currency led to atourism and export boom. Eventually, creditors wererepaidas wel...