The new Zimbabwean 100-dollar note, the highest denomination in the market is out.
The note is worth only US$0.40 cents at real exchange rate value in the black market using an average exchange rate of US$1: ZW250.
Officially it is worth US$.67 cents, at US$1: ZW145.9 as inflation surges.
The local currency is continuously losing its purchasing power and trading weakly against major convertible currencies.
Meanwhile, Zimbabwe’s central bank recently raised benchmark interest rates to 80% in a futile attempt to rein in inflation.
At the time, Zimbabwe’s inflation was at 161%/yr, according to renowned economist Steve Hanke.
Hanke said to put real, inflation adjusted interest rates in positive territory, the benchmark would have to be above 160%.
Zwnews
