Hyperinflation Spurs Zimbabwe to Halt Payments to Contractors
- Contracts were being priced at the parallel market rate
- Suspension is part of efforts to halt a slump in the currency
The measure adds to others announced this year to stabilize the currency and curb inflation such as lifting the key interest rate to 200% from 80% in June, reintroducing the US dollar as legal currency, selling gold coins and potentially setting up a currency board.
Photographer: Jekesai Njikizana/AFP/Getty Images
Zimbabwe has suspended payments to government contractors as part of efforts to halt a slump in its currency that’s fueling hyperinflation.
The order was sent to government ministries, departments and agencies by Permanent Secretary of Finance George Guvamatanga after the Treasury noticed they were submitting invoices of cash for goods and services using parallel market rates. The MDAs are required to seek approval from Treasury for current and future contract pricing and share with it their due diligence on existing charges, Guvamatanga said.