Zimbabwe: Dollar plunges to Z$25 million to the U.S. dollar

2008-03-06 00:00

HARARE — The Zimbabwe currency tumbled to a record low of 25 million for a single U.S. dollar yesterday, currency dealers said.

With Zimbabwe dollars mostly available in bundles of 100 000 and 200 000 notes, one U.S.$100 note bought nearly 20 kg of local notes at the new market rate yesterday.

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.

The price of the U.S. currency was also pushed up by central bank buying on the unofficial market to pay for power, gasoline and vehicle imports ahead of the polling, said one black market dealer who could not be identified for fear of reprisals.

The black market exchange rate for the U.S. dollar broke the one million Zimbabwe dollar mark for the first time in late October. The Zimdollar’s fall has quickened dramatically in recent weeks, the dealer said.

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