|
|
Article: Too many notes; Congo's currency.(Monetary chaos in Congo)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- September 14, 2002
CopyrightCOPYRIGHT 2002 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Fresh notes--with the same serial number
Exchange-rate arbitrage favours the brave
FOUR years ago, a new government renamed the country (it used to be Zaire) and launched a new currency, the Congolese franc. The dictator, Laurent Kabila, promised a fresh start after the hyperinflationary binge of his predecessor, Mobutu Sese Seko. Perhaps he should not have given 30 different ministries licences to print money. By 2000, inflation was 511%--lower than under Mobutu, but still dire.
Then, last year, Mr Kabila was assassinated. His son and successor, Joseph, stopped the presses. This year, inflation is expected to be about 14%. Mr Kabila junior also ...