Harare – Those starving to track down the Zimbabwe economy ‘slide into abyss’ will benefit immensely from a ‘blow by blow’ timeline dating ...
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Harare – Those starving to track down the Zimbabwe economy ‘slide into abyss’ will benefit immensely from a ‘blow by blow’ timeline dating back to 1980 – until recently, brought to you courtesy of tiznwei.com.
Beneath, we detail how the former bread basket of Africa economy slowly attained its present status.‘Black Friday’
In 1980 – the first Zimbabwean dollar was announced, replacing the Rhodesian dollar at par. It was worth more than the US dollar in the official exchange market, with Z$1 equivalent to US$1, 47.
By 1997 – the Zimbabwe dollar plunged a record 72 percent on Friday, November 14 – an episode widely regarded as the herald of the country’s economic meltdown. The day is commonly denoted to as ‘Black Friday.'
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| War Veterans Demonstrate in Harare |
Soon after, the dollar crashed after war veterans were paid unbudgeted payouts of Z$50 000 each as compensation for their participation during the war – this operation gobbled Z$3 billion from the economy.
Record inflation
2003 was characterised by a skyrocketing hyperinflation develops – the Reserve Bank of Zimbabwe (RBZ) issued short-lived emergency travellers cheques.
Record inflation
2003 was characterised by a skyrocketing hyperinflation develops – the Reserve Bank of Zimbabwe (RBZ) issued short-lived emergency travellers cheques.
These were then quickly superseded by time-limited Bearer’s Cheques – in denominations ranging from Z$5 000 to Z$20 000 in 2003 – then up to Z$100 000 by early 2006.
The RBZ in 2006 redenominated the Zimbabwean dollar – devaluing the currency by 60 percent against the US dollar in the process. And in 2007, the Zimbabwe dollar was devalued again, this time by 92 percent to give an official exchange rate of Z$30 000 to US$1.
The parallel market alias black market exchange rate was estimated to be Z$600 000 to US$1.
2008 – RBZ debases the dollar whereby Z$10 billion would be worth Z$1. Later that year RBZ announced that a further 12 zeros would be deleted from the currency – with Z$1 trillion being exchanged for Z$1.
The RBZ in 2006 redenominated the Zimbabwean dollar – devaluing the currency by 60 percent against the US dollar in the process. And in 2007, the Zimbabwe dollar was devalued again, this time by 92 percent to give an official exchange rate of Z$30 000 to US$1.
The parallel market alias black market exchange rate was estimated to be Z$600 000 to US$1.
2008 – RBZ debases the dollar whereby Z$10 billion would be worth Z$1. Later that year RBZ announced that a further 12 zeros would be deleted from the currency – with Z$1 trillion being exchanged for Z$1.
By the end of the year the Zimbabwe dollar had become largely irrelevant. The economy by then had almost completely dollarised.
Multi-currency
2009 offered a shift to the battered economy. Acting Finance minister Patrick Chinamasa officially announced Zimbabweans would be allowed to conduct business in any currency as a response to the hyperinflation crunch.
By 2014, the RBZ imported bond coins to ease a shortage of change in the economy – and in 2016 – it announced plans to introduce bond notes valued at US$200 million – this was meant to contain an acute liquidity crunch plus cash crisis.
Before their proclamation had been employed, the RBZ shifted goalposts in a follow-up communiqué.
“Accordingly, the requirement for the apportionment of 50 percent of foreign exchange receipts into 40 percent ZAR and 10 percent EUR has been removed with immediate effect.” – Online/tinzwei.com
Multi-currency
2009 offered a shift to the battered economy. Acting Finance minister Patrick Chinamasa officially announced Zimbabweans would be allowed to conduct business in any currency as a response to the hyperinflation crunch.
By 2014, the RBZ imported bond coins to ease a shortage of change in the economy – and in 2016 – it announced plans to introduce bond notes valued at US$200 million – this was meant to contain an acute liquidity crunch plus cash crisis.
Before their proclamation had been employed, the RBZ shifted goalposts in a follow-up communiqué.
“Accordingly, the requirement for the apportionment of 50 percent of foreign exchange receipts into 40 percent ZAR and 10 percent EUR has been removed with immediate effect.” – Online/tinzwei.com
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