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Zim's shocking latest inflation figure
Radio VOP
August 10, 2008

http://www.radiovop.com/index.php?option=com_content&task=view&id=3483&Itemid=756

Zimbabwe's soaring inflation now stands at a staggering 42 million percent, economists have said.

The figure is contained in document made available to Radio VOP. The document has been circulated among the banking community and top business leaders.

They say it was not true that the inflation rate stood at 11 million percent as pointed out by Reserve Bank of Zimbabwe Governor, Dr Gideon Gono, in his Monetary Policy Statement last week.

Genesis Investment bank (GIB) chief economist, Brains Muchemwa, said the figure given out by Gono was for July and not for August as he did not want to rile the international community at a time when there are talks between the MDC and the ruling Zanu PF party.

He said Gono did not bother to check with economists before presenting his statement to the nation.

A document was sent to all bankers in Zimbabwe which said the inflation figure stood at 42 million percent but this did not see the light of day as Gono is alleged to have told the economists not to be alarmists.

Gono is alleged to have then withdrawn the foreign currency trading licence of Genesis due to its economic department which he accused of overstepping its boundaries by revealing the actual inflation figure. He accused the bank of dealing illegally in foreign currency but this was never proven as the bank had its licence given back last week.

This 42 million percent inflation figure is the highest in the world and other economists point out that since there are no goods on the shelves it could actually be much worse.

Meanwhile the rates for the South African Rand and the United States greenback continue to pick up in Harare as citizens now prefer to keep foreign currency instead of the worthless bearer cheques.

The Rand on Saturday was pegged at Zd 4.5 trillion for 100 Rands. For USd5 one could recive Zd 1.5 trillion on the same day.

The dealers say there is no cash on the market as people are now holding on to their money expecting a major cash crisis.

The Bankers Association of Zimbabwe (BAZ) has however denied the money shortage in Zimbabwe.

However surveys carried out in Harare at CBZ Holdings Limited, CABS, Kingdom Bank Limited, and FBC Holdings Limited showed long queues in Harare on Saturday.

BAZ boss, John Mangudya said there was no cash crisis and this was being taken out of context.

This is despite the fact that just below his office there was a very long and winding queue.

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