December 05, 2007

From Associated Press, 3 December: Airline fees doubled, black market dominates in Zimbabwe

Harare - The state airline doubled its fares Monday and the cost of a new Zimbabwe passport went up thirty fold. Spiraling prices also saw restaurant and bar prices double over the weekend, and prices were sometimes raised during a restaurant meal. Waitresses in a sports club advised patrons to place their orders before a price hike came into force an hour later and some restaurants began accepting American currency as chronic shortages of local cash worsened. (...)The central bank has not officially devalued the local currency but has said imported luxuries for the upcoming Christmas period can be sold at an exchange rate equivalent of 850,000-1, less than half the black market rate. (...)After an absence of five months, cigarettes have reappeared in stores after the price doubled to about 50 US cents a pack, still among the cheapest tobacco products in the world at the black market exchange rate, but the most expensive at US$40 a pack at the government's official exchange rate. A senior teacher earns about the equivalent of US$10 a month at the unofficial exchange rate....

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