Browsing: United States dollar

The United States dollar has rallied against major world currencies since the beginning of the year.

According to the World Bank, the greenback has appreciated by as much as 11% since the beginning of 2022. Several major currencies have lost ground to the US dollar and this development has serious implications for emerging markets, many of which are in Africa.

  • United States dollar has appreciated in value since the beginning of the year as investors demand them relative to other currencies, World bank reports
  • The Federal Reserve has been increasing interest rates, and this has led to investors piling into the currency which they perceive to be safer than the more esoteric emerging market currencies that have shown to be more volatile
  • World Bank warns that a strong United States dollar environment will adversely affect Africa and emerging market economies. This is because of fundamental and structural economic vulnerabilities

The …

The United States dollar is now legal tender in Zimbabwe after the finance minister announced measures to stabilize the economy in June
The central bank of Zimbabwe introduced gold coins to shore up the value of the local currency
Inflation has been a nagging problem in Zimbabwe for the last 25 years

The pin finally dropped in Harare.

For years the monetary authorities of Zimbabwe had adamantly pursued a de-dollarization policy. The country's government reintroduced the local currency in 2019 after a decade of using a basket of multiple currencies led by the United States dolla...

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