Jason Posted September 6, 2007 Share Posted September 6, 2007 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 Question for you all, if you were the finance minister what would you do to 'tackle' inflation? Discus... Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted September 6, 2007 Share Posted September 6, 2007 (edited) 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. Edited September 6, 2007 by Goldfinger Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted September 6, 2007 Share Posted September 6, 2007 http://news.bbc.co.uk/1/hi/business/6982749.stmZimbabwe 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 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. Quote Link to comment Share on other sites More sharing options...
Compounded Posted September 6, 2007 Share Posted September 6, 2007 Speaking of the africans the queen mother said "the poor dears they just cannot rule themselves" shock horror all around but it passed. Emperors clothes or what. Quote Link to comment Share on other sites More sharing options...
Guest Posted September 6, 2007 Share Posted September 6, 2007 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." Quote Link to comment Share on other sites More sharing options...
Solvent Celt Posted September 6, 2007 Share Posted September 6, 2007 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. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted September 6, 2007 Share Posted September 6, 2007 Don't forget Zim knocked off three zeroes in July '06 - or was it six zeroes in July '03? One can't keep up. Quote Link to comment Share on other sites More sharing options...
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