Steve Hanke, a currency specialist and economist from the United States, claims that Zimbabwe’s inflation rate is 1298% annually and accuses President Emmerson Mnangagwa of ruining the nation.
Hanke referred to Mnangagwa’s recent directive to the RBZ to cease foreign currency borrowing as “economic stupidity” as the government fights to contain a decline in the local currency.
“President Mnangagwa of Zimbabwe is teaching a masterclass in economic foolishness and corruption.
He keeps trying to convince Zimbabweans to utilise the Zim dollar despite the country’s staggering annual inflation rate of 1298 percent. He is destroying Zimbabwe, Hanke claimed on Twitter.
The central bank of Zimbabwe has been instructed to stop borrowing foreign currency by President Mnangagwa. The third bout of hyperinflation in Zimbabwe in the last fifteen years will not be stopped by this in any way.
Mnangagwa’s re-election campaign will be challenging on August 23.
Mnangagwa accuses his ‘detractors’ of sabotaging the economy as ZWL plummets and prices soar.
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FIU issues orders for product price cuts and alerts companies to violations of the legislation governing interbank exchange rates.
Zimbabwe’s currency is losing value substantially on a daily basis, while costs are increasing and companies are demanding US dollars in exchange for goods and services.
The value of consumers’ local currencies has decreased, making it harder for them to purchase more essential commodities.
According to the Zimbabwe National Statistics Agency (ZIMSTAT), on account of a large rise in prices, month-over-month inflation increased to 15.7% in May.