UNITED States economist and currency expert Steve Hanke has said Zimbabwe’s inflation is at 1298% per year, accusing President Emmerson Mnangagwa of running down the country.
Mnangagwa recently ordered the RBZ to stop foreign currency borrowing, as the government battles to contain a plunge in the local currency, a move Hanke described as ‘economic stupidity’.
“Zimbabwe’s President Mnangagwa is giving a masterclass in economic stupidity and corruption.
“With annual inflation at a whopping 1298% per year, he continues to try to push Zimbabweans to use the Zim dollar. He is leading Zimbabwe to ruins,” Hanke wrote on Twitter.
Zimbabwe Pres. Mnangagwa has ordered the central bank to stop borrowing foreign currency. This will do absolutely nothing to stop Zimbabwe’s third episode of hyperinflation in fifteen years, which started on June 12th.https://t.co/8LPfnyU7p8
— Steve Hanke (@steve_hanke) June 18, 2023
Mnangagwa faces a tough bid for re-election in the August 23 polls.
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The value of Zimbabwe’s currency is falling dramatically by the day, prices are rising and businesses are demanding USD for goods and services.
Consumers have had their local currency value eroded, with an increasing number of basic goods now beyond their reach.
In May, the Zimbabwe National Statistics Agency (ZIMSTAT) reported that month on month inflation rose significantly to 15,7% on the back of a sharp increase in prices.