Zimbabwe’s currency at risk of being rejected, local business group says

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Zimbabwe’s local currency is at “risk” of being shunned if runaway inflation isn’t quelled: Confederation of Zimbabwe Industries. ZimNews Zimdollar

Zimbabwe’s local currency is at “risk” of being shunned if runaway inflation isn’t quelled, the country’s largest business group said. Policy interventions implemented by authorities over the last six months to protect the local currency and rein in inflation, such as a temporary ban on bank lending and imposing an interbank exchange rate have so far failed, the Confederation of Zimbabwe Industries, said. Annual inflation soared in June to 192% — a 13-month high.

Zimbabwe’s inflation rate is the highest in southern Africa and almost eight times that of Angola’s, the country with the second highest rate in the region, the business group said. “With prices of goods increasing over a month at rates that are well above what our counterparts are experiencing over a period of 12 months implies that Zimbabwe’s industry is at a disadvantage and if things continue in this direction, the industry will struggle.

 

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