Money changers 400% responsible for zimbabwe's inflation?
As local Zimbabwean bond note and electronic transfers continue to depreciate in leaps and bounds against the United States dollar, so are the prices of basic commodities like cooking oil. It got worse on the 11th of October when the rate of transfer to USD rose to as high as $550 in transfer per every $100 USD. The Game changed on 12th October, just a day after, according to hearsay when government injected a large sums of US dollars, countering the black market and bringing the US dollar to bond ratio to as low as $170 bond for every $100 US dollars. So Are money changers responsible for this hyper inflation?
The percentage drop is just unbelievable, many fell in the trap yesterday, the 11th of October 2018 to buy US dollars as it seemed they were the last remaining and this drop is surely a slap right in the face to those that rushed to buy US dollars from the money changers around the country.
History repeating itself? I read a portion in the bible that talks about Our Lord Jesus whipping money changers in the church as it was illegal and unacceptable to do such dealings in the church. According to the Munangagwa led government, money changing in the black market is an illegal business, a criminal case.
Am I saying the Mnangagwa led government is just like Jesus? Defininitely not, a very big noo. I am talking about the cost acting on Hearsay, many were frantic and fell for the trap, and who suffered? The money buyer suffered. I am afraid the same may also happen to those stocking quanties of cooking oil, sugar and other commodities because of the same hearsay. It may be wise to releasenow. Do the maths, you buy cooking oil at $10 and if prices drop, you may sell at $2, we come back to 400% loss.
Coming back to my issue, do you think money changers are responsible for this runaway inflation and bond note depreciation? Yes, of course not absoluely but to some degree they are.