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Zimbabwe has become a society of currency traders

The government’s latest policy raises the spectre of hyperinflation again

By Christian Westerlind Wigstrom  

A man shows the new $2 bond notes in Harare,Zimbabwe,November 28,2016 ©Xinhua/SIPA USA/PA Images

In Zimbabwe, everyone is a currency trader. Two decades of disastrous policies have crippled one of Africa’s most promising economies and inadvertently created a society of foreign exchange specialists. In 2008-09, during the second worst hyperinflation in world history, Zimbabweans hedged their exposure to the national currency, the Zimbabwe dollar, by resorting to barter and building up reserves of foreign cash.

The Zimbabwean dollar…

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