Zimdollar At Risk Of Complete Rejection, CZI Warns
![Zimdollar At Risk Of Complete Rejection, CZI Warns](/_next/image/?url=https%3A%2F%2Fzero.pindula.co.zw%2Fmedia%2Fnews%2Farticles%2Fzimdollar-at-risk-of-complete-rejection-czi-warns_m7Stdfc.webp&w=640&q=75)
The Confederation of Zimbabwe Industries (CZI) has warned that the Zimbabwe dollar is at “risk” of being rejected if runaway inflation isn’t tamed.
Annual inflation soared in June to 192% — a 13-month high, with the Zimdollar the worst-performing currency in Africa.
The local currency has lost more than two-thirds of its value against the US dollar this year, according to data compiled by Bloomberg.
In a report dated July 5 to its members, CZI also said policy interventions implemented by authorities over the last six months to protect the local currency and arrest runaway inflation have so far failed. It said:
Although year-on-year inflation has been on an upward trend since August 2021, there is a noticeable exponential increase since March 2022 which is threatening to lead to hyperinflation if sustained.
Latest Samsung Galaxy A05s available on Pindula:
128GB storage, 6GB RAM$148 USD
WhatsApp +263715068543
This also means that policy is losing the battle with respect to protecting the local currency as there is a risk of it being rejected in the market.
CZI also warned that surging consumer prices have put businesses at a disadvantage among regional peers.
The business group noted that Zimbabwe’s inflation rate is the highest in southern Africa and almost eight times that of Angola’s, the country with the second-highest rate in the region.