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Devaluation at a grand scale

Last week the Zimbabwe Finance minister Samuel Mumbengegwi devalued the Zimbabwe dollar by 1200% in another measure to help arrest the decline in the Zimbabwe economy but soon after finishing that announcement I think a lot of people would have realised that it wasn't enough.

Following the devaluation one US dollar will now buy 30,000 Zimbabwe dollars on the official market but what makes it interesting is the fact that the black market rate is more than ten times the official new rate.

I think the Zimdollar should have been devalued earlier to help catch the black market rate but I think that was never a favoured move and this time it looks like there was no other option but to have this devaluation.

Also one may argue that devaluing the currency without solving the other problems that are causing the economy to collapse will just mean the black market rate just flies away and that it true.

I am waiting to see what other measures will be brought up as elections near possibly in the first half of next year.

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