Consumer prices rising too fast while your currency craters? That citadel of sensibility, Zimbabwe, has discovered the solution: just stop all bank lending. What could possibly go wrong?
President Emmerson Mnangagwa ordered banks to stop lending with immediate effect on Saturday, saying the unprecedented move was meant to stop speculation against the Zimbabwean dollar, which has been rapidly devalued on a thriving black market.
Before Mnangagwa’s announcement, the Zimbabwean dollar was officially quoted at 165.94 against the U.S. dollar, but had been trading at an exchange rate of between 330 and 400 to the greenback on the black market.


