The tragedy that is Zimbabwe sees the official inflation rate stated at 2.2 million percent. This is the rate used by the Zimbabwean Central Bank. The unofficial rates suggest that at some point over the previous 12 months the inflation rate has been as high as 70 million percent. External analysts to the Central Bank estimate inflation to be running at about 12.5 million percent.The constant instability that afflicts Zimbabwe is contributing to the continual spiking inflation rate. If Robert Mugabe loved Zimbabwe and Zimbabwean independence half as much as he says he does then he would step down immediately and allow some normalcy to return to the political spectrum. Unfortunately, Mugabe is an egotistical narcissistic dictator and tyrant who has no interest in anything but his own legacy. This legacy will never be viewed in a positive light. Any positives that he might have acquired in the early years have been erased, utterly and completely.
One job that I would most definitely not want is that of Governor of the Central Bank of Zimbabwe. Trying to formulate financial policy in an economic environment that sees inflation running in the millions of percent is not only a challenge but impossible if current conditions persist much longer. Nevertheless, Gideon Gono (pictured), Central Bank Governor, ploughs forward. Most of his statements seem to firmly cast the blame on the exponential rise in inflation on the black market and profiteers.
Basic goods such as soap and cooking oil have increased 70 million and 60 million percent respectively. Sugar is up some 36 million percent. The Central Bank is introducing a coupon system to ensure that the need will get some access to basic necessities.
The official exchange rate has the USD 1 buying 20 million Zimbabwe dollars. However, the black market rate which is more likely to reflect the real exchange value of Zimbabwean Dollars has USD 1 buying some 90 million Zimbabwe Dollars.
I have this sinking feeling that things are going to get worse in Zimbabwe before they get better.
