RBZ latest interbank forex exchange rate, as inflation hits 1198%/ year

The Reserve Bank of Zimbabwe -RBZ- has published the interbank foreign currency exchange rate, Gold Coin and Gold-backed Digital Token Prices as at 2 December 2024.

Apparently, the Zimbabwe Gold (ZiG) monthly inflation was 11.7% in November, slower than the 37.2% in October, figures released by the Zimbabwe Statistics Agency (ZimStat) have shown.

According to the Agency, October rate had risen sharply because of the effects of the devaluation in late September.

In USD tems, November annual inflation was 3.3% from 4.1% last month.

Monthly USD inflation was 0.1%, 0.6 percentage points lower than October.

The strong link between fiscal deficit and money growth in Zimbabwe, especially since 1997 suggests that over-expansionary fiscal policy is often at the heart of hyperinflationary trend in the country.

Thus high fiscal deficits produce rapid money growth, which results in high rates of hyperinflation.

Meanwhile, although the prices of regulated goods like electricity tariffs have increased, the RBZ anticipates that the parallel market rate will appreciate soon due to strong foreign currency inflows, which rose by 13.4% in the first eight months of 2024 compared to the previous year.

Apparently, renowned American economic analyst Professor Steve Hanke says Zimbabwe’s inflation is galloping out of control.

Hanke calls for dollarisation, saying is the only option to save Zimbabwe’s economy.

He accuses President Emmerson Dambudzo Mnangagwa and his administration of ignorance and incompetence.

“Today, I measure Zimbabwe’s inflation at 1198%/yr.

“That’s the HIGHEST INFLATION RATE IN THE WORLD.

“PRES. MNANGAGWA = ARROGANT, IGNORANT, & INCOMPETENT,” posted on 30 November 2024.

Zwnews