Sunday, August 17, 2008

Zimbabwe Inflaton: 50 Million% for the Current Month

Angus Shaw for AP reports:

Embattled restaurants ...added a penalty fee of up to 80 percent on top of the bill for those who paid by check, estimating price rises in the five days it takes a check to clear.

On Aug. 1, the central bank slashed 10 zeros from the plummeting local currency, and Reserve Bank Governor Gideon Gono warned companies against doing business in U.S. dollars. He said such transactions were still illegal and should be reported to police....

...barred by the government from using U.S. dollars for purchases, Zimbabweans turned to a new money source Wednesday: gasoline coupons.

I suspect there is a lot of underground US dollar transactions, otherwise the economy would be in even worse shape than it is now.

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