Search

 

Cablegate: Zimdollar Tumbles Further

This record is a partial extract of the original cable. The full text of the original cable is not available.

061157Z Aug 03

UNCLAS HARARE 001578

SIPDIS

STATE FOR AF/S and AF/EX
NSC FOR SENIOR AFRICA DIRECTOR JFRAZER
USDOC FOR 2037 DIEMOND
PASS USTR FLORIZELLE LISER
TREASURY FOR ED BARBER AND C WILKINSON
STATE PASS USAID FOR MARJORIE COPSON

E. O. 12958: N/A
TAGS: ECON EINV PGOV ZI
SUBJECT: Zimdollar Tumbles Further


1. Summary: The Zimdollar has fallen another 25 percent
from Z$3350 to 4200:US$1. End Summary.

2. In early May, the Zimdollar still traded at
Z$1450:US$1, so the three month devaluation stands at
around two-thirds. While a number of factors are
weakening the Zimdollar, oil parastatal NOCZIM has been
aggressively selling 91-day bonds and converting the
proceeds into U.S. dollars for fuel purchases. (Even so,
NOCZIM is only supplying subsidized fuel to the GOZ's own
vehicles and some commuter vans.) The largest Zimbabwean
note is now worth 12 US cents. A Z$ 1 coin, still widely
circulated, exchanges for US$.0002. If you carry 42 of
these bulky coins in your pocket, you have one US cent.

3. Comment: Through accelerating inflation and a
weakening Zimdollar, the GOZ is confronted with its
failed economic policies. The Zimdollar has nearly
fallen below the Zambian Kwacha, currently trading at
4560:US$1, a psychological barrier for a country that
once looked down its nose at poorer neighbors.

Whitehead

© Scoop Media

 
 
 
World Headlines

 



Save The Children: Ukraine: 21 Children Killed Or Injured In Horrific Week Of Violence

At least 21 children have been killed or injured in just a week in an uptick of violence across Ukraine, Save the Children said today... More>>


UN: Visionary ‘Blue Transformation’ Strategy To Enhance Underwater Food Systems

Record levels of fisheries and aquaculture production are making a critical contribution to global food security, the UN Ocean Conference under way in Lisbon, Portugal, heard on Wednesday...
More>>
Abu Akleh Shooting: Fatal Shot Came From Israeli Forces, Says OHCHR
Israeli forces were behind the fatal shooting of Al Jazeera journalist Shireen Abu Akleh in the West Bank - not indiscriminate Palestinian firing - the UN human rights office, OHCHR, alleged on Friday... More>>



UN Ocean Conference: Opens With Call For Urgent Action To Tackle Ocean Emergency
With climate change, biodiversity loss and pollution exacting a devastating toll on the world’s ocean — critical to food security, economic growth and the environment... More>>

World Vision: Deeply Concerned For Thousands Affected By Afghanistan Quake
World Vision is deeply concerned about the deteriorating humanitarian situation in Afghanistan in the wake of a powerful earthquake in the early hours of this morning... More>>



Malaysia: UN Experts Welcome Announcement To Abolish Mandatory Death Penalty

UN human rights experts* today commended an announcement made by the Malaysian government that it will abolish the country’s mandatory death penalty and encouraged Parliament to take concrete steps to pass the agreement into law... More>>