Gono's 'sleepless nights' over inflation

Gono's 'sleepless nights' over inflation

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By Staff Reporter

ZIMBABWE'S central bank governor is having "sleepless nights" over how to tame inflation currently running at more than 120%.

Reserve Bank Governor Gideon Gono is struggling to contain inflation, which President Robert Mugabe's government considers the "Number 1 enemy".

From an all-time high of more than 622% in January 2004, the inflation rate dropped to 123.7% this March, but inflationary pressures are once again high and there are fears it will soar again.

Gono, who is due to give a monetary policy review next Thursday, says he has decided upon "resolute measures that we are going to take once and for all".

Earlier, Gono had said he wanted inflation to be around 20%-30% by the end of 2005. That may not be possible, independent economists say.

Zimbabwe's parallel market for foreign currency is said to be booming once again and there are food shortages, which the government says have been "artificially" created.

"We are not new to these challenges. They will be dealt with decisively," Gono, a former leading banker, told the Herald - dpa
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