1997 Zimbabwean Black Friday
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1997 Zimbabwean Black Friday is an economic event that led to the turmoil of Zimbabwean economy as a result of former president, Mugabe's measure. The term ‘Black Friday’ was driven from a national electricity blackout that happened the same day.[1] On 14 November 1997,[2] Robert Mugabe gave order to Finance Minister to release Z$4.2 billion into the economy as a once off payment to over 50,000 war veterans. The Zimbabwean Dollar crashed the same day by 71.5% against United States Dollar while Zimbabwe Stock Market lost 46% of its previous day market capitalization. Private Companies lost Z$4 billion in market value, the likes of Delta Corporation.[3][4]
Background
[edit]The situation was propelled by war veterans, as they pushed to be paid their war packages.[3]
Events
[edit]Zimbabwe's introduction of unbudgeted Z$4.2 billion, which represented 3% of the GDP, led to the plummeting of local currency by 71.5% and stock market by 46%. The central bank intervened into the market with an $15 million worth of reserves to restore order.[3] The central bank placed several measures including forcing corporates to liquidate their foreign currency holdings, banks and bureau de change were no longer allowed to hold $5 million and $500,000 in foreign currency respectively.[3] Companies lost Z$4 billion in form foreign exchange losses and stock market losses.[citation needed]
Aftermath
[edit]Zim dollar crashed by nearly 72% in four hours.[5] ZSE shed 46% of its value.[3]
See also
[edit]References
[edit]- ^ "Time line of collapse of Zim dollar - Mike Campbell Foundation". www.mikecampbellfoundationresources.com. Retrieved 2023-10-18.
- ^ Marawanyika, Godfrey (2007-11-11). "Zim marks 10 years since 'Black Friday'". The Mail & Guardian. Retrieved 2023-10-18.
- ^ a b c d e "Black Friday: A spark fell into a keg of rumour, nervousness and blind panic – eBusiness Weekly". www.businessweekly.co.zw. Retrieved 2023-10-18.
- ^ "Black Friday 17th anniversary". The Herald. Retrieved 2023-10-18.
- ^ "Zimbabwe's power failure". The Economist. ISSN 0013-0613. Retrieved 2023-10-18.