For those travelling to Zim's

You will need a bigger wheelbarrow to carry your dollars in

Regards, Peter
--------------------------

Zim central bank devalues currency by 40%

Harare, Zimbabwe



21 July 2005 05:10

Zimbabwe's central bank on Thursday massively devalued the local currency in a bid to increase inflows of scarce foreign currency as the country battles to find hard cash to pay for fuel, food and electricity.

The Zimbabwe dollar was devalued by 40% from about Z$12 500 to Z$17 500 to the United States dollar, Reserve Bank of Zimbabwe (RBZ) Governor Gideon Gono announced in a monetary policy statement.

"The rate that's now going to be given to exporters is Z$17 500 per US dollar," Gono said, adding that the same rate will apply to anyone who exchanges foreign currency at commercial banks in Zimbabwe.

The devaluation is the second in just two months. In May, Gono announced a devaluation from Z$6 400 to Z$10 000 to the greenback. The central bank later said anyone changing hard cash with local banks would be given a 25% bonus, taking the effective rate of exchange to Z$12 500 to the US currency.

However, the new rate is still significantly less than the black-market rate for the US dollar, which is reported to be about Z$25 000.

Gono said the devaluation is one of several "bold moves" Zimbabwe is taking to halt the country's economic decline.

Zimbabwe's economy has experienced more than five years of economic recession. Annual inflation is currently estimated at more than 164% and is one of the highest rates in the world.

Gono said battling inflation will continue to be a priority. He promised inflation will start to tail off by September, and was optimistic about reducing it to double digits by year-end.

News of the devaluation comes amid reports that the Zimbabwe government has been making efforts to secure a loan from its economically powerful neighbour, South Africa.

Zimbabwe has not been granted international loans for several years, mainly due to concerns from Western donor nations over the government's human rights record.

Harare owes the International Monetary Fund (IMF) about $300-million, and there have been unconfirmed reports that Zimbabwe is in imminent danger of expulsion from the international lender over the unpaid debt.

But Gono said on Thursday the RBZ is now repaying the IMF $9-million every three months, up from $1,5-million every quarter.

In a surprise move, Gono also announced that the RBZ will designate fuel stations throughout the country that will sell fuel for one US dollar per litre in order to ease a critical shortage that has seen no significant fuel deliveries in Zimbabwe for the past two months.

Zimbabwe's foreign currency market is tightly regulated, but Gono said "no questions will be asked as to where one got his or her foreign currency" to buy fuel.

Thursday's edition of the state-controlled Herald reported that Zimbabwe's national airline has had to cancel international and domestic flights due to shortages of jet fuel. -- Sapa-DPA



Zimbabwe will introduce a new currency next year, phasing out bank notes introduced two years ago as a stop-gap measure to ease critical cash shortages across the country, a government daily reported on Wednesday.

"Production is at full throttle as we speak," the state-owned Herald newspaper quoted a central bank official saying.

"Bearer's cheques and the other denominations will be phased out by the end of this year while the new currency will be introduced in January next year."

Damn it! I have $40,350 Zim Dollars left over from my trip. They keep devaluing their money and pretty soon my $40,350Zim is going to be worthless. If I hurry back, maybe I can still buy a Fanta and a package of crisps.

Regards,

Terry

If you can find a store that carries any food, maybe ...

quote:

Originally posted by T.Carr:
Damn it! I have $40,350 Zim Dollars left over from my trip. They keep devaluing their money and pretty soon my $40,350Zim is going to be worthless. If I hurry back, maybe I can still buy a Fanta and a package of crisps.

Regards,

Terry

Terry,

They will regain their "value", when Nature calls.

Hog Killer

Terry

In the wake of local faith in our moronic reserve bank govenors monitary policy, the US$ is 40,000:1. It went from 32000:1 yesterday morning when people heard gono's "recovery" plan!

So You have a whole $1-05 Which at presnt prices will buy you a coke, crunchie and a packet of chips.

To think, At independence there were US$1.71 : 1 Z$

But that's life in Africa with a bob arround

And this surprises anyone? hmmm, let's see, the most prosperous two countries in the whole continent were South Africa and Rhodesia...er excuse me Zimbabwe. Since the "change" one is now well-ensconced in the economic and political toilet and the other one is rapidly headed tht way. Is there a common thread here? jorge

quote:

Is there a common thread here? jorge

Yes but the PC police say we are not supposed to talk about it.

quote:

Originally posted by Balla Balla:
--------------------
Zim central bank devalues currency by 40%

The central bank later said anyone changing hard cash with local banks would be given a 25% bonus, taking the effective rate of exchange to Z$12 500 to the US currency.

However, the new rate is still significantly less than the black-market rate for the US dollar, which is reported to be about Z$25 000.


"

Old Bob wants to get his hands on more U.S. dollars.Mabee he's starting to think about his retirement!He could move to America go on public aid not not worry about spending all that he has stolen.