Economics
For Zimbabwe Investors, Stock Market Closing Is Last Straw
- Shares used by many wealthy Zimbabweans as an inflation hedge
- Inflation is surging, fuel is scarce, the currency is crashing
Zimbabwe Stock Exchange in Harare.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
When Zimbabwe suspended trading on its stock exchange last week, James Hove was left with no access to the funds he needs to conduct his business.
Like many wealthy Zimbabweans, Hove invests in the local stock market. Not for the value he sees in the companies whose stocks trade on it, but as a hedge against surging consumer prices: while annual inflation is running at 786%, the benchmark Zimbabwe Stock Exchange industrial index has risen sevenfold this year.