Less than a decade after Zimbabwe one of the highest inflations in its history, at 89.7 sextillion (10^23) percent, which led to withdrawal of its currency, the country is back to hyper inflation.
As per calculations, the rate is at 348%, an article on Forbes said.
The author Steve Hanke, an economics professor at Johns Hopkins University in the United States, called the official inflation figure of 0.78 percent in September as a “truly fantastical piece of artwork”.
The country had started issuing ‘the New Zim dollar’ since 2013. But the money supply has exploded over the years, resulting in inflation.
“The government’s creation of the New Zim dollar to finance its fiscal deficit has resulted in an explosion of the money supply…the New Zim dollar is rapidly becoming worthless, and with that, hyperinflation has yet again reared its ugly head,” he wrote.
As there is a foreign exchange crisis and hyper inflation, people are buying any assets that could hold value. Many are buying virtual currencies such as bit-coin.