Analysis by Region - Emerging Markets - Zimbabwe

Analysis by Region - Emerging Markets - Zimbabwe

Zimbabwe's dysfunctional monetary policy is on full display yet again with prices having spiralled out of control. Earlier this year, authorities changed the way they measure inflation by switching to a weighted average of items priced in both Zimbabwean dollars and US dollars. The change was prompted by the continued usage of US dollars, with locals preferring the greenback over Zimbabwe’s dollar. The economy is experiencing a period of acute volatility – although more than usual, it is not that different from previous periods of heightened uncertainty.