Macroeconomic Forecast Zimbabwe

July 2008 | Macroeconomic Forecasts

In the absence of any properly compiled data, central bank officials have suggested that the present inflation rate is 2,200,000%, but independent commentators say it is more like 20,000,000% and spiralling. Reforms to the exchange rate regime introduced in June have collapsed: the official interbank rate is about ZWD34,000,000,000/US4, but a newly resurgent parallel market is quoting around ZWD90,000,000,000/ZWD$ at last glance, although the price changes by the hour. Supply into the official market has dried-up, but demand is said to be brisk, as according to unsubstantiated remarks by traders there is large-scale capital flight underway by the elite seeking to convert local dollar assets into FX ahead of political change.

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