Zimbabwe central bank chief urges pay freeze to stall inflation
Sunday, 3 August 2008
HARARE, Aug 2 (AFP): Zimbabwe's central bank chief has urged a six-month price and salary freeze in a bid to rein in runaway inflation, with the country in the midst of an economic meltdown, state media reported yesterday.
"Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency," The Herald quoted Reserve Bank governor Gideon Gono as saying.
"As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months," said Gono, who has repeatedly called for price and wage freezes in the past.
The latest proposal came as the central bank unveiled a new series of bank notes Friday after knocking off 10 zeros from its currency.
Long lines of people seeking to withdraw money from banks spilled out onto the streets, as the withdrawal limit was also increased by a factor of 20.
"Zimbabweans must realise that the country is in a practically binding state of socio-economic emergency," The Herald quoted Reserve Bank governor Gideon Gono as saying.
"As such, there is need for a universal moratorium on all incomes and prices for a minimum period of six months," said Gono, who has repeatedly called for price and wage freezes in the past.
The latest proposal came as the central bank unveiled a new series of bank notes Friday after knocking off 10 zeros from its currency.
Long lines of people seeking to withdraw money from banks spilled out onto the streets, as the withdrawal limit was also increased by a factor of 20.