The Situation of the economy in Zimbabwe is extremely serious. President Emmerson Mnangagwa has promised to stabilize the Economy “soon”. But not everyone is so optimistic.
Empty shelves in the capital, Harare, the country experienced the largest economic crisis since ten years
Both Inflation and prices are on the rise, there are shortages in the supply of petrol, food and medicines, and a shortage in foreign currencies. The Opposition calls for a transitional government to be the worsening economic and political crisis in Zimbabwe, Mr. The pressure on President Emmerson Mnangagwa to act quickly, growing.
At the beginning of the week, Mnangagwa met with representatives of the Zimbabwean economy. The President assured them that he would “work day and night” in order to stabilize the economy. The signs point to a possible repeat of the massive crisis that had recognized the country about ten years ago. Including the sudden rise of the industrial index on the stock exchange in Zimbabwe, for example, falls in October. Within a few days he doubled.
Play poker on the stock exchange
According to Tapiwa Bepe, spokeswoman for the Zimbabwe stock exchange, is the increase a result of the profound crisis in the country. “The political and economic environment is unstable. The increased activity on the equity market goes back to the fact that investors in real values, Position and cash and Bank balances sell,” said Bepe DW. From foreign and domestic investors believe that equities would provide more security.
Hamster purchases at the gas station – the gas is running out
But brokers such as Itai Chirume say it’s become extremely difficult to take money out of the stock market, tied up in electronic Bank balances.
Mnangagwa promises to act
“The fear of losing assets and savings, as it happened during the economic collapse of 2008, is currently available, but unnecessary,” Mnangagwa to appease. “I know your concerns and Fears, to appreciate, and you,” the President understand represent to the Economy.
The 76-Year-old also said that Zimbabwe would continue to adhere to the System with multiple currencies introduced in the country in 2009. At that time, the government continued the valueless Zimbabwe Dollar, later she gave up the currency.
Since then can be paid in Zimbabwe with hard foreign currencies, mainly US Dollar and South African Rand. Because the country exports but little, and hardly foreign exchange earned, dollars and Rand in the normal course of business life is very short.
The shortage of cash balance, the government introduced two years ago, the so-called Bond Notes. The bills are government debt, which could initially be at the rate of 1:1 against the US Dollar exchanged. However, the bills have lost much of their value, meanwhile, the rate is 4:1. The Bond Notes are a kind of parallel currency, which itself suffers from Inflation.
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No dollars for Zimbabwe (12.10.2018)
Many in Zimbabwe believe that it is time, the Bond Notes, to abolish. “Because of the existence of the Bond Notes, the US Dollar is no longer in circulation,” says Economist John Robertson. The Bond Notes would be abolished, it would be the US Dollar, what is good for business, Robertson Deutsche Welle.
Some aspects of the meeting with Mnangagwa not tasted the economic representatives. Sifelani Jabangwe, President of the industrial Association “Confederation of Zimbabwe Industries”, resented Mnangagwas claim that producers would hoard stocks to drive the price up. “If someone is holding back its stock, probably because he’s trying to understand the direction in which [the economy] is developing,” says Jabangwe to the DW. In addition, many companies are running out of basic materials. “The panic purchases will not only affect the customers, there is also the industry has taken. Recently, there was even panic purchases of cars.”