Tuesday, December 2, 2008

Exchange rates

From John Robertson
With regret, but not much surprise, I am finding that the exchange rate numbers are becoming less convincing and more erratic. Disruptions caused by Dr Gono's misplaced attacks on the banks and the stock exchange might take time to settle, but other events are overtaking even the basics of finding money. Water supplies have dried up everywhere in Harare and factories are forced to send staff home. Some hotels, many schools and most of the city centre high rise buildings have become unsafe places to work and demonstrations are said to be in an advanced stage of planning. Cash allowances from the banks are being stepped up appreciably and will hopefully permit the currency to regain at least a little functional value, but inflation seems certain to make that a temporary benefit at best.

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