Hyperinflation: Notes from Harare
Jun 29 2009 The African Executive
Article by Warren Coat
I am here as part of an IMF technical assistance team to the Finance Ministry and central bank specifically authorized by the IMF’s Executive Board to begin the IMF’s reengagement with Zimbabwe . Zimbabwe is a resource rich country and Harare is a beautiful city. I am impressed with the intelligence and skills of its professional class. What has happened in this country in recent years is a huge and shocking tragedy.
Our first day here. The Harald’s front page headline in big letters read: “IMF technical team expected today.” On our second day, the front page of the business section carried an article titled: “IMF team to assess payment system,” while the front page of the paper carried the headline “Man fights off crocodile in 6-hour battle.” On our third day, the newspaper didn’t mention us at all, thank God.
Our team of five (from the Netherlands, Denmark, Canada, New Zealand and myself) is here at the request of the Minister of Finance to advise the government on the governance of the central bank (the Reserve Bank of Zimbabwe), the efficiency of interbank and retail payment systems, the safety and soundness of the banking system following the collapse of Zimbabwe’s currency after the world’s second worst hyperinflation in history and to begin discussions of a future monetary regime. Most of our work was in the Reserve Bank, whose Governor (a close alley of President Mugabe) the Finance Minister would like to replace. We wished to be as inconspicuous as possible.
http://www.africanexecutive.com/modules/magazine/articles.php?article=4408
29
June
Hyperinflation: Notes from Harare
Jun 29 2009 The African Executive
Article by Warren Coat
I am here as part of an IMF technical assistance team to the Finance Ministry and central bank specifically authorized by the IMF’s Executive Board to begin the IMF’s reengagement with Zimbabwe . Zimbabwe is a resource rich country and Harare is a beautiful city. I am impressed with the intelligence and skills of its professional class. What has happened in this country in recent years is a huge and shocking tragedy.
Our first day here. The Harald’s front page headline in big letters read: “IMF technical team expected today.” On our second day, the front page of the business section carried an article titled: “IMF team to assess payment system,” while the front page of the paper carried the headline “Man fights off crocodile in 6-hour battle.” On our third day, the newspaper didn’t mention us at all, thank God.
Our team of five (from the Netherlands, Denmark, Canada, New Zealand and myself) is here at the request of the Minister of Finance to advise the government on the governance of the central bank (the Reserve Bank of Zimbabwe), the efficiency of interbank and retail payment systems, the safety and soundness of the banking system following the collapse of Zimbabwe’s currency after the world’s second worst hyperinflation in history and to begin discussions of a future monetary regime. Most of our work was in the Reserve Bank, whose Governor (a close alley of President Mugabe) the Finance Minister would like to replace. We wished to be as inconspicuous as possible.
http://www.africanexecutive.com/modules/magazine/articles.php?article=4408