Zimbabwe inflation up in November

Zimbabwe’s annual inflation went up by 3.8 percentage points and month-on-month by two percentage points in November, figures released by the Zimbabwe National Statistics Agency today said.

Annual inflation went up from 17.8% in October to 21.6% while month-on-month inflation rose from 2.5% to 4.5%.

Zimbabwe is battling to maintain currency stability and has allowed the use of multiple currencies until 2030, a move that is likely to lead to more reliance on the United States dollar which now accounts for more than 80% of the transactions in the country.

Business is, however, quite aware that increased use of the US dollar is going to make it less competitive.

Reserve Bank of Zimbabwe governor John Mangudya has advocated for the creation of super demand for the local currency by compelling business to pay some taxes in local currency.

The central bank is also working on a de-dollarization roadmap to provide forward guidance to economic agents and markets to enhance certainty and predictability in domestic transactions.

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