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Zimbabwe In Currency Devaluation

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http://news.bbc.co.uk/1/hi/business/6982749.stm

Zimbabwe in currency devaluation
Zimbabwe has had to print new large-denomination notes to cope
Zimbabwe has devalued its currency as part of its battle to tackle its deepening economic crisis.
One US dollar now buys 30,000 Zimbabwe dollars on the official market, having previously earned 250 Zimbabwe dollars.
However dealers said that on the illegal market, $1 was buying 250,000 of the Zimbabwean currency
Latest figures put Zimbabwe's annual inflation at 7,634%. The International Monetary Fund (IMF) has warned it could reach 100,000% by the end of the year.
Finance minister Samuel Mumbengegwi unveiled the devaluation in a budget announcement.
Other reforms included waiving taxes on some lower earners and increasing stamp and excise duties.
The devaluation announcement was described as a "move in the right direction" by former head of the National Chamber of Commerce, Luxon Zembe.
However he said that the gap between the official rate and the market rate needed to be narrowed.

Now the BBC seem to think a new higher valued note will 'tackle' inflation

_44073674_zimbabwenoteafp203b.jpg

Question for you all, if you were the finance minister what would you do to 'tackle' inflation? Discus...

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Question for you all, if you were the finance minister what would you do to 'tackle' inflation? Discus...

There is only one solution: they have to peg it to something the Zimbabwe government can not just create (like USD, EUR or gold). But they must do it in a sustainable way, and that will hurt.

200px-Inflation-1923.jpg

Edited by Goldfinger

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Guest DissipatedYouthIsValuable
http://news.bbc.co.uk/1/hi/business/6982749.stm
Zimbabwe in currency devaluation
Zimbabwe has had to print new large-denomination notes to cope
Zimbabwe has devalued its currency as part of its battle to tackle its deepening economic crisis.
One US dollar now buys 30,000 Zimbabwe dollars on the official market, having previously earned 250 Zimbabwe dollars.
However dealers said that on the illegal market, $1 was buying 250,000 of the Zimbabwean currency
Latest figures put Zimbabwe's annual inflation at 7,634%. The International Monetary Fund (IMF) has warned it could reach 100,000% by the end of the year.
Finance minister Samuel Mumbengegwi unveiled the devaluation in a budget announcement.
Other reforms included waiving taxes on some lower earners and increasing stamp and excise duties.
The devaluation announcement was described as a "move in the right direction" by former head of the National Chamber of Commerce, Luxon Zembe.
However he said that the gap between the official rate and the market rate needed to be narrowed.

Now the BBC seem to think a new higher valued note will 'tackle' inflation

_44073674_zimbabwenoteafp203b.jpg

Question for you all, if you were the finance minister what would you do to 'tackle' inflation? Discus...

Put a gun to Mugabe's head.

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Question for you all, if you were the finance minister what would you do to 'tackle' inflation? Discus...

Stop asset confiscation (taking the farms off people), then foreigners might want to do business with you.

Alternatively, "Put a gun to Mugabe's head."

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Put a gun to Mugabe's head.

And pull the trigger.

They need to revalue the currency and link it to something tangible.

Get the whites back to commercial farming (if they can get any whites to come back that is). Food production and foreign exchange has to be a key concern.

Fuel seems problematic so they need to trade for that unless they can become self sufficient in bioethanol.

Such a shame that such a rich country has been run down to it's current pitiful state.

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