Monday, June 29, 2009

Zimbabwe
This graph shows the exchange rate between a Zimbabwe dollar (ZWD) and a U.S. dollar (USD).

Most of this information came from a article that is from around 2007, therefore some of the information here may be incorrect now.


Zimbabwe has suffered from hyperinflation for about five years. In 2006, Zimbabwe had the greatest inflation level in all of Africa. In December 1997, Zimbabwe had an annual inflation rate of twenty percent. In February 2007, Zimbabwe's inflation rate hit 1,594 percent.


Zimbabwe's banking sector is made up of seventeen commercial banks. Three commercial banks, including the largest one, have some degree of state ownership; however the other fourteen are privately owned. Four of the privately owned banks are foreign-owned. A number of the banks have been faced with liquidity crises due to the worsening economy in Zimbabwe. The insurance sector consists of nine life insurance firms, 26 general insurance firms and six re-insurers. All are under the supervision of the Zimbabwe Ministry of Finance, Economic Planning and Development.


Zimbabwe's stock exchange had a market capitalisation of about twenty billion USD at the end of 2006. The stock market offered its highest returns in Africa in 2005 and for most of 2006 despite the deep recession in Zimbabwe. This was driven by local investors hoping to make significant returns on their investments in the midst of hyperinflation.

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