Zimdollar maintains lead on Troubled Currencies index

The country’s local currency Zimdollar has maintained its pole position on Professor Steve Hanke’s troubled currencies index.

According to his latest, data Zimbabwe’s year on year inflation is perched 848% followed by Venezuela at 330% and Argentina at 239%.

“Once again, Zimbabwe (848%/yr), Venezuela (330%/yr), Argentina (239%/yr), Syria (173%/yr), & Lebanon (134%) come in as the world’s top five inflaters,” he says.

Previously, Zimbabwe was also pegged at (848%/yr), Venezuela (333%/yr), Argentina (271%/yr), Syria (172%/yr), & Lebanon (133%) come in as the world’s top five inflaters.

This has been the case, for the past three successive editions of the CurrencyWatch publication by the renowned American economist.

However, according to the Reserve Bank of Zimbabwe, Zimbabwe’s annual consumer inflation eased to 17.8% in October 2023, from September’s 18.4%, mainly due to slowing prices of housing & utilities (23.2% vs 25.3% in September); food & non-alcoholic beverages (17.8% vs 18.4%); education (25.4% vs 31%) and communication (42.1% vs 50.2%).

On a monthly basis, consumer prices inched up by 2.5% in October, the most in four months, after a 1% rise in the previous month. The country’s statistics agency adopted last month a geometric aggregation method for computing weighted price indices, replacing the previously used arithmetic aggregation. This method resulted in a drop in yearly inflation from 77.2% in August to 18.4% in September.

But, critics have disputed official figures which they allege to have hab been doctored to present a good picture.

Apparently, the country’s local currency, has continued to fair badly against major convertible currencies especially the American dollar.

Trading updates released by the Reserve Bank of Zimbabwe (RBZ) this week shows that on the Wholesale Auction platform, a total 19 bids were received with a total US$17, 3 million being disbursed out of US$20 million on offer which the participating banks could not exhaust.

On the Retail Auction Platform, a total US$1,9 million was disbursed with raw materials receiving US$598 523, machinery and equipment US$612 285, Consumables US$123 770, Services US$249 Zimbabwe’s annual consumer inflation eased to 17.8% in October 2023, from September’s 18.4%, mainly due to slowing prices of housing & utilities (23.2% vs 25.3% in September); food & non-alcoholic beverages (17.8% vs 18.4%); education (25.4% vs 31%) and communication (42.1% vs 50.2%). On a monthly basis, consumer prices inched up by 2.5% in October, the most in four months, after a 1% rise in the previous month.

The country’s statistics agency adopted last month a geometric aggregation method for computing weighted price indices, replacing the previously used arithmetic aggregation. This method resulted in a drop in yearly inflation from 77.2% in August to 18.4% in September. source: Reserve Bank of Zimbabwewith Retail and Distribution US$315 518, pharmaceuticals and Chemicals US$27 527, Paper and packaging US$72 709.

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