n South African Law Journal - Foreign currency and interest awards in the context of fluctuating inflation and currency rates




The relationship between inflation and exchange rates is well-known to economists. Given the restitutionary principles inherent in our law of delict and contract, taken together with the peculiar susceptibility of developing economies to inflation and declining currencies, the rates of interest payable on debts, and the currency in which they are denominated, are important legal issues for South Africa and Southern African jurisdictions generally. If any testimony is needed to demonstrate this, the recent hyperinflation in Zimbabwe is ample for the purpose. The official figures released by the Zimbabwean Government in February 2008 indicated an official rate of inflation of 231 million per cent. As at 1 July 2008, the official exchange rate was 12 226 034 516.65 Zimbabwe Dollars to the US Dollar.


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