1997 Zimbabwean Black Friday

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 the 14th of 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. 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

The situation was propelled by War Veterans, as they push for them to paid their war packages.^[3]

Events

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%, 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

Zim dollar crashed by nearly 72% in four hours.^[5] ZSE shed 46% of its value.^[3]

See also

• Economy of Zimbabwe
• Robert Gabriel Mugabe
• Zimbabwe national budget

References