Zimbabwe's currency slumps to record low
The Zimbabwe currency tumbled to a record low of 25 million for a single US dollar today.
With Zimbabwe dollars mostly available in bundles of 100,000 and 200,000 notes, one 100 US dollar note bought nearly 40lbs of local notes at the new market rate.
Currency dealers said uncertainties ahead of elections scheduled for March 29 and the world’s highest inflation of 100,500% led holders of hard currency to hang on to their money at the same time as the state central bank pumped more local cash into the market for election costs.
In the economic meltdown, the black market exchange rate for the US dollar broke the 1 million Zimbabwe dollar mark for the first time in late October.
The value of the Zimbabwe dollar weakened steadily against hard currencies throughout last year but its fall quickened dramatically in recent weeks, one dealer said.
With industry and production collapsing, Zimbabweans have become heavily dependent on imports of the corn meal staple and basic goods.
Until last year, the former regional breadbasket was self sufficient in canned and processed foods, household goods, soap, toothpaste, toiletries and other items now imported from neighbours Malawi, South Africa and Zambia and from as far afield as Egypt, Germany, Iran and Malaysia.
According to latest official poverty line data, an average family of five needs a monthly income €22.70 to survive while remaining living in poverty.
But most lower paid workers earn less than the equivalent of €3.25 a month.
