In an effort to combat inflation and stabilize the tumbling exchange rate, Zimbabwe’s government has reintroduced U.S dollars as a legal tender.. The Reserve Bank of Zimbabwe raised interest rates today for what they claim will be the last time until 2020 when it reaches 200%. This comes after years where Capital Investments grew exponentially leading many experts predicting hyperinflation but now with efforts such as these coming into fruition there is hope that things may finally turn around.
John Mangudya, the Governor of the Central Bank has expressed concern that inflation is getting out of control. He says it’s hurting consumer demand and confidence, which could lead to economic gains being lost if not controlled soon enough!
Central banks worldwide are doing everything in their power to tackle inflation and prevent capital outflows. The ever-watchful eye of investors has caused them great concern, because if these concerns go unaddressed there could be major implications for the economy as a whole!
When inflation reaches 192% a year, it’s time to find ways of escaping the country. The Zimbabwe dollar has lost more than two thirds its value this season and food costs have skyrocketed due in part from President Mugabe’s policies that are harming his nation greatly .
The citizens must make sure they’re eating well before prices go up even higher or else there might not be enough food supplies left for everyone when things finally crash down totally exhausted from all sides.
The finance minister announced that the government will be legalizing a second use for America’s dollars. He says they plan on maintaining a multi-currency system, where you can still use them both in Zimbabwe or abroad but with different values according to what is more valuable at any given time – like now!
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Reserve Bank of Zimbabwe and its plans
The Reserve Bank of Zimbabwe announced an increase in deposit rates to 40% from 12.5%, This means that people are now able not only maintain their savings but also earn some decent interest on it, too! In addition they will soon be introduced with gold coins which can provide them as alternative store-of value.
Plans are being developed by the Reserve Bank of Zimbabwe to introduce forward-providing, according to Mangudya.
The Zimbabwe dollar is still tumbling and the government has announced new measures to try again. They are looking into abandoning their local currency in favor of US Dollars, after a bout with hyperinflation back when they were running things themselves!
In an effort to stop the local currency’s collapse, officials have imposed a 10-day ban on bank lending and restrictions within trading on stock exchanges. They also allow companies pay taxes in regards with their new unit as well as introduce interbank rates for all commerce going forward – which is problematic because it may lead some businesses away from using cash altogether.
The country’s biggest retailer, OK Zimbabwe Ltd., has released its annual results. The company said in June 16th statement that the operating environment “remains challenging” with high inflation levels and exchange rate volatility while announcing bonuses for staff members who stay at their jobs through thick-and thin periods of economic woes affecting businesses across all sectors including retailing.
