Devaluation underscores Zimbabwe’s economic weakness

Significance The devaluation is another confirmation of the fundamental weaknesses in the economy. Impacts The disparity between the ZiG’s black-market and official exchange rate value will grow, presenting continued opportunities for graft. Economic mismanagement and corruption will likely make international financial institutions reluctant to re-engage with Zimbabwe. The hunger caused by this season’s drought will be compounded by the shrinking economy. The weakening economy may become a focal point for infighting among competing political factions within the ruling party.