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 crushed 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.

Aftermath

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

See also

References
  1. "Time line of collapse of Zim dollar - Mike Campbell Foundation". www.mikecampbellfoundationresources.com. Retrieved 2023-10-18.
  2. Marawanyika, Godfrey (2007-11-11). "Zim marks 10 years since 'Black Friday'". The Mail & Guardian. Retrieved 2023-10-18.
  3. "Black Friday: A spark fell into a keg of rumour, nervousness and blind panic – eBusiness Weekly". www.businessweekly.co.zw. Retrieved 2023-10-18.
  4. "Black Friday 17th anniversary". The Herald. Retrieved 2023-10-18.
  5. "Zimbabwe's power failure". The Economist. ISSN 0013-0613. Retrieved 2023-10-18.
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