Friday, April 22, 2011

Should African Countries Dollarise?

Zimbabwe's inflation eased in March to 2.7 per cent, down from 3.0 per cent in February, thanks to lower prices for telecommunications and medicine, the government said Friday.

The southern African country suffered a decade of runaway prices amid hyperinflation.

The economy stabilised after the government abandoned the worthless local currency in 2009, allowing trade in US dollars and other major foreign currencies.

The formation of a power-sharing government in 2009 by the main political rivals President Robert Mugabe and Morgan Tsvangirai has also brought stability to the economy.

But foreign investors have maintained a wait-and-see stance amid concerns over new equity regulations which seek to give locals majority stakes in foreign-owned companies.

Read more here http://www.africareview.com/

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