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Dollarization of Zimbabwe Economy Appears To Vanquish Hyperinflation
VOA News ^ | 24 March 2009 | Blessing Zulu

Posted on 03/24/2009 5:56:16 PM PDT by nickcarraway

Consumer prices in Zimbabwe declined in January and February according to the country's Central Statistical Office, suggesting that the substitution of U.S. dollars and other hard currencies for the virtually worthless Zimbabwean dollar has vanquished hyperinflation.

The statistical authority said prices fell 3.1% in February from the month earlier, and declined by 2.3% in January from December levels, a stunning turnaround from the last inflation rate officially announced by the CSO of 231 million percent in July of last year.

Some prominent international economists including hyperinflation expert Steve Hanke of the Johns Hopkins School of Applied Economics reckoned Zimbabwean hyperinflation reached percentage gains in the quintillions and sextillions before they stopped measuring.

Hanke in a monograph on Zimbabwean hyperinflation had recommended among other cures a currency board system in which the local currency would be rigidly pegged to the U.S. dollar, but the gradual adoption of the greenback and South African rand by businesses and the general population as a surer store of value has had much the same effect.

Nearly all goods and services in Zimbabwe are paid for with hard currency and the Zimbabwe dollar has fallen out of use except for paying certain official fees and fines.

Finance Minister Tendai Biti has predicted inflation will fall to 10% by the end of 2009.

Economist John Robertson cautioned in an interview with reporter Blessing Zulu however that that although food prices have been declining, the same cannot be said of services including fixed-line and mobile telephone accounts now billed in dollars.


TOPICS: Business/Economy; Extended News; Foreign Affairs
KEYWORDS: dollar; inflation; zimbabwe

1 posted on 03/24/2009 5:56:17 PM PDT by nickcarraway
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To: nickcarraway

Did they consider that the dollar could be now inflating faster than the Zimbabwe currency?


2 posted on 03/24/2009 5:58:30 PM PDT by chopperman
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To: chopperman

Yes, it may be wiser to choose a country that isn’t ruled by an African.


3 posted on 03/24/2009 6:00:53 PM PDT by PBRSTREETGANG
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To: PBRSTREETGANG

ROTFLMAO


4 posted on 03/24/2009 6:02:40 PM PDT by arealconservativeforachange (Tell JD Hayworth to run for McCain's seat! http://www.jdhayworth.com/contact.php)
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To: nickcarraway

Zim is going to keep our inflation low by absorbing all those dollars. We’ll have to print even more now.


5 posted on 03/24/2009 6:08:29 PM PDT by 1010RD (First Do No Harm)
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To: nickcarraway

I wonder what currency we will use here in the USA after the dollar becomes unusable?


6 posted on 03/24/2009 6:33:35 PM PDT by devere
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To: nickcarraway

Hey, where are the pic-posts of those Z-billion $$ bills?


7 posted on 03/24/2009 6:35:12 PM PDT by Wiseghy ("You want to break this army? Then break your word to it.")
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To: nickcarraway
The real question is what will Mugabe print now?

Look out for a flood of counterfeit hard currencies to start cropping up.

Zimbabwe already makes a worthless coin that matches the nickle in size but not weight. That's a grift of almost five cents, drinks are on Bob. Someone is putting them into circulation though.

8 posted on 03/24/2009 6:38:59 PM PDT by Dinsdale
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To: nickcarraway

give it a couple of years...


9 posted on 03/24/2009 6:40:11 PM PDT by GeronL (....and I won't let it happen again!)
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To: devere

Now that Zimbabwe has vanquished hyperinflation, as a first step in his monetary package, Obama plans to peg the worthless U.S dollar to the the virtually worthless Zimbabwean dollar .


10 posted on 03/24/2009 6:42:00 PM PDT by haroldeveryman
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To: devere
I hear the Krugerrand was always pretty stable!
11 posted on 03/24/2009 7:03:18 PM PDT by Dawnsblood
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To: nickcarraway

Maybe we should stock up on those billion dollar notes for our time in the barrel yet to come.


12 posted on 03/24/2009 7:28:21 PM PDT by Paladin2 (Big Ears + Big Spending --> BigEarMarx, the man behind TOTUS)
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To: Wiseghy

13 posted on 03/24/2009 8:01:08 PM PDT by RushingWater
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To: RushingWater

Wot is the bill in U.S. dollars?


14 posted on 03/24/2009 8:09:25 PM PDT by Mmogamer (<This space for lease>)
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To: Dinsdale
Look out for a flood of counterfeit hard currencies to start cropping up.

Don't forget, Bob is BFF with the North Koreans, notorious counterfeiters of the US$100 bill.

15 posted on 03/24/2009 11:56:18 PM PDT by happygrl (BORG: Barack 0bama Resistance Group: we will not be assimilated)
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To: nickcarraway

Zimbabwe’s going through deflation? Quick, somebody grab Bernanke! Call Geithner! We’ve got to prop up their wages, unfreeze their credit, and spur their consumption.


16 posted on 03/25/2009 12:01:17 AM PDT by Tublecane
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To: devere

I hope we go for the Looney......it’ll match up well with the bunch in DC.....


17 posted on 03/25/2009 2:35:14 AM PDT by cherry
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