Zimbabwe’s local currency Zimbabwe Gold (ZiG) is leading the pack as the world’s underperforming money, on Professor Steve Hanke’s dashboard.
“This week’s top 5 inflators: 1.🇿🇼 Zimbabwe (1385%/yr)
2.🇸🇩 Sudan (352%/yr)
3.🇸🇸 South Sudan (214%/yr)
4.🇳🇬 Nigeria (120%/yr)
5.🇦🇷 Argentina (71%/yr),” notes Hanke.
Hanke is on record calling on the President Emmerson Dambudzo Mnangagwa’s government to fully dolarise and work on economic fundamentals.
The cause of Zimbabwe’s inflation could be attributed to numerous economic shocks.
The national government increased the money supply in response to rising national debt, there were significant declines in economic output and exports, and political corruption was coupled with a fundamentally weak economy.
Apparently, external influences in the form of changes in crude oil prices, the South African Rand/United States (US) Dollar exchange rate and the CPI for South Africa are being viewed as the main factors currently explaining inflation dynamics in Zimbabwe.
The Reserve Bank of Zimbabwe recently devalued the country’s local currency by close to 50 percent.
Zwnews
