Monday, April 13, 2009

Zimbabwe Dollar R.I.P.

Zimbabwe will not use its own local currency for at least a year, a state newspaper, The Sunday Mail , reported yesterday.

"The Zimbabwe dollar will be out for at least a year. We resolved that there will be no immediate plans to (re)introduce the money because there is nothing to support and hold its value," the newspaper quoted Economic Planning and Development Minister Elton Mangoma as saying.

For all practical purposes the Z dollar has been on life support since January when the government allowed the use of multiple foreign currencies.

Since then, inflation has been crushed, from inflation of 230 million % to virtually none.

On Thursday, Zimbabwe's Central Statistical Office (CSO) said consumer prices fell for a third straight month in March after the government abandoned its worthless currency.
The CSO said inflation stood at -3.0% month-on-month in March compared with -3.1% in February, as food prices fell.

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