With security forces having seized control of economic and financial policy at a time of shrinking GDP and skyrocketing inflation, Zimbabwe is facing its worst crisis in more than a decade.
and the value of the Zimbabwean dollar has continued to tumble, pushing official annual inflation to 785.6% in May and causing real incomes for Zimbabweans to evaporate. The International Monetary Fund estimates that the economy will contract as much as 10.4% this year following a 12.8% contraction in 2019.
Mangudya has claimed local banks have over $1 billion in their accounts, which he hopes will help stabilize the local currency's value. Zimbabwe Reserve Bank Governor John Mangudya delivers his Monetory Policy Statement in Harare on February 20, 2019, where he announced the establishment of an interbank foreign exchange market in the country officially abandoning the 1:1 exchange rate between the USD and the country's quasi currency the Bond note.
The ruling ZANU-PF party is now embroiled in a tussle with insurance firm Old Mutual, which the government said it had "ejected" from the country's financial system amid allegations of undermining the local currency. The Old Mutual Implied Rate, used by some companies to transact business, uses the difference between the prices of Old Mutual's shares on the Zimbabwe and London stock exchanges to predict the future rate of the Zimbabwean dollar.
"Even in a likely best-case scenario, Zimbabwe faces another round of hyperinflation that will collapse its economy, widespread starvation and social instability that threaten neighboring countries, and the looming prospect of another military intervention in political power," EXX Africa concluded in its report.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
For Restaurant Owners, One-Star Yelp Reviews During the COVID Era Feel Like a Punch to the GutFor restaurant owners, one-star Yelp reviews during the COVID era feel like a punch to the gut
Read more »
Centuries of Racism Have Created a Mental Health Crisis Among Black AmericansMarah Lidey of wellness app Shine shares how years of racism has significantly impacted the collective mental health of Black Americans.
Read more »
How coronavirus could do real, long-term damage to women's careersWomen have been hit harder by the economic crisis sparked by Covid-19 and experts say disparities exacerbated by the coronavirus pandemic could have long-lasting impact on women's careers.
Read more »
Dollar firms as weak China retail sales sound warningThe dollar found support on Thursday as simmering Sino-U.S. tensions and weak Chinese consumption data knocked investors' faith in a fairly swift global economic recovery from the coronavirus crisis.
Read more »
Obama Warns Virus ‘Doesn’t Care About Spin Or Ideology’Obama urges Americans to “deal with our public health crisis” as Trump insists that the virus “will disappear.”
Read more »
Overdose Deaths Rise, May Reach Record Level, Federal Data ShowU.S. fatal drug overdoses rose last year, new federal data show, reversing a one-year-decline and indicating that another public-health crisis was worsening as the coronavirus pandemic was poised to begin
Read more »