An 800% Stock Market Rally Puts Zimbabweans on Edge
The stock market is a refuge for local investors in a hyperinflation economy.
Zimbabwean and US dollars change hands at a bakery in Harare.
Photographer: Jekesai Njikizana/AFP/Getty Images
In Harare, Zimbabwe, home to the world’s biggest stock market rally, the gains come at break-neck speed: 5%, 10%, even 20% in a single session. Tally them up, and the market is up an astonishing 800% on the year.
But in a country where up is often down and the next currency crisis is always just around the corner, the furious rally is a cause for concern, not jubilation. It’s a tell-tale sign, market observers here say, that investors are bracing for an inflation spiral and seeking a hedge to protect the value of their money. Consumer prices are climbing at an annual pace of over 100%, sparking jitters in a nation where the scars of hyperinflation run deep.