The Zimbabwean Standard newspaper reports today that Zimbabwe’s new currency, the ZiG, has once again lost buying power on the black market, dropping from 20 to 23 against the US Dollar.
This is despite the arrest of illegal money changers last week, who remain in custody.
Zimbabwe currently experiences the highest inflation rate in the world.
The introduction of the ZiG two weeks ago, intended to replace the worthless Zimbabwe dollar, has had little impact. The ZiG cannot be used to purchase fuel or pay government customs duties or passport applications.
The demand for the US Dollar remains high, as the government itself rejects the ZiG for services such as purchasing car number plates.
Additionally, all airlines except one local Zimbabwean airline refuse to accept it as a form of payment.
The government-controlled central bank has pegged the ZiG at 13.56 to the US Dollar, an exchange rate that is not determined by market forces but is artificially fixed.
