This suggests that the Zim dollar is undervalued, but the country s dreadful politics will probably drive it even lower. Zimbabwe has only tiny reserves of foreign exchange left, but the IMF is increasingly unwilling to bail out a government that keeps murky accounts, threatens to confiscate white-owned farms, and spends an undisclosed fortune on a pointless war in distant Congo. Zimbabwe s tobacco auctions, currently under way, may bolster the currency temporarily. But this year s crop is poor. How long President Robert Mugabe can stave off another crash, similar to last year s, is anyone s guess.
Cheap beer is one of the few comforts left Zimbabweans.
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