Syria's Currency Holds a Better Value than Zimbabwe or Argentina's Currency! Or is It About How You Calculate the Numbers?
According to US economist Steve Hanke, Zimbabwe has the world's weakest currency against the greenback and the highest inflation rate.
As a professor of applied economics at Johns Hopkins University, Hanke has often clashed with Zimbabwe's President Emmerson Mnangagwa over inflation and exchange rate estimates. Hanke stated on January 16 that Zimbabwe's currency has fallen 92% since January 1, 2023, against the dollar.
Zimbabwe dollars cost 12,500 to buy one greenback, making it the weakest currency in the world. The Argentine peso is close behind at 1,120 to the greenback after losing 69% of its value since January 1, 2023.
According to Hanke, Zimbabwe's annual inflation is 1,072%, Argentina's is 220%, and Syria's is 121%.
His estimates are in sharp contrast with official figures. The Zimbabwean central bank announced at 12:42p.m. on January 18 that one dollar was worth 8,890 Zimbabwe dollars. Based on the latest available figures, the nation's annual inflation rate was 25.52 percent in December 2023.
According to Hopewell Chin'ono, a Zimbabwean journalist and political activist, locals have lost faith in the government's ability to run the economy. According to Chin'ono, the country is the riskiest investment destination on the continent, riskier than some war-torn nations. Many bank their money abroad or keep it "under the pillow" due to "institutional corruption."
"We can't ignore the fact that economic indicators such as inflation rates and currency strength or weakness are crucial indicators of a country's economic performance," Chin'ono said. As a result, Zimbabwe's economic challenges, reflected in the weakening currency and high inflation, indicate serious underlying economic difficulties..."
