Zimbabwe's Hyperinflation Goes Beyond Control?
If you’ve brought a bottle of beer in Zimbabwe, you must be multi-billionaire for sure. In a country where the prices of commodities are doubling every 22 days, you may have to shell out 150 Billion Z$ to buy a bottle. And just imagine paying as much as Z$600 Millions for a loaf of bread.
In order to meet with the demand for bank notes with higher denominations, the Reserve Bank of Zimbabwe introduced Z$ 100 Billion notes. The Zimbabwean dollar which was equal to 1.59 US dollars when it was formed in the year 1980 stands nowhere near. Presently a Billion Zimbabwean Dollars are exchanged for a single US dollar.
The ever escalating Zimbabwean hyper inflation is running over like crazy beyond anyone’s control. Though the official annual inflation rate stands to millions, it is said that the actual rate runs to billions perhaps trillions.
When the inflation rate in India escalated to the highest peak of 12.91%, there was a huge cry all over the country. The current inflation rate in India has eased down to 10.37% which is still considered high.
The Zimbabwean agro based economy which was once an exporter to South Africa has become an importer.
President Robert Mugabe’s 28 year long one man show since 1980 is blamed for the present economic crisis. President Mugabe’s controversial reform program of redistributing land owned by wealthy white farm owners to smaller farmers resulted in the shortage of commodities as the farmers where not equipped for the change.
This was followed by US and European sanctions in 2003. More than 20,000 ethnic Zimbabweans were the victims of genocide. More than 30% Zimbabweans have left the country.
Though President Mugabe’s ruling party ZANU-PF (Zimbabwe African National Union – Patriotic Front) could not win majority in the recent elections, opposition leader Morgan Tsvangirai of MDC (Movement for Democratic Change) had eventually withdrawn himself from the polls alleging unfair elections.
A major shift in government policies, change in economic management, control of inflation and production of commodities is the dire need of the hour to prevent the country from further collapse. While the world watches helplessly, the future looks bleak for the people of Zimbabwe where a civilian unrest is about to explode any moment.
In order to meet with the demand for bank notes with higher denominations, the Reserve Bank of Zimbabwe introduced Z$ 100 Billion notes. The Zimbabwean dollar which was equal to 1.59 US dollars when it was formed in the year 1980 stands nowhere near. Presently a Billion Zimbabwean Dollars are exchanged for a single US dollar.
The ever escalating Zimbabwean hyper inflation is running over like crazy beyond anyone’s control. Though the official annual inflation rate stands to millions, it is said that the actual rate runs to billions perhaps trillions.
When the inflation rate in India escalated to the highest peak of 12.91%, there was a huge cry all over the country. The current inflation rate in India has eased down to 10.37% which is still considered high.
The Zimbabwean agro based economy which was once an exporter to South Africa has become an importer.
President Robert Mugabe’s 28 year long one man show since 1980 is blamed for the present economic crisis. President Mugabe’s controversial reform program of redistributing land owned by wealthy white farm owners to smaller farmers resulted in the shortage of commodities as the farmers where not equipped for the change.
This was followed by US and European sanctions in 2003. More than 20,000 ethnic Zimbabweans were the victims of genocide. More than 30% Zimbabweans have left the country.
Though President Mugabe’s ruling party ZANU-PF (Zimbabwe African National Union – Patriotic Front) could not win majority in the recent elections, opposition leader Morgan Tsvangirai of MDC (Movement for Democratic Change) had eventually withdrawn himself from the polls alleging unfair elections.
A major shift in government policies, change in economic management, control of inflation and production of commodities is the dire need of the hour to prevent the country from further collapse. While the world watches helplessly, the future looks bleak for the people of Zimbabwe where a civilian unrest is about to explode any moment.
Can we hope for the best?
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