To do that, one needs data on the exchange rate between the domestic currency and a stable international currency. However, the organized stock market in Harare did provide prices that allowed for the calculation of implied Zimbabwe dollar exchange rates. One stock, Old Mutual, was, and still is, listed on both the London Stock Exchange and the Zimbabwe Stock Exchange. To convert the resulting Zimbabwe dollar/sterling exchange rate to a Zimbabwe dollar/U.S. To finance its deficits, the government created a “New Zim dollar.” The New Zim dollar is issued at par to the U.S. dollar, but trades at a significant discount to the U.S. dollar.

Source: Forbes October 29, 2017 03:22 UTC