HARARE, Reuters – Zimbabwe’s government has ordered banks not to lend immediately. Harare stated that this was to prevent speculation regarding the Zimbabwean dollars and part of a raft aimed at halting its rapid devaluation in the black market.

This southern African nation reintroduced the local currency after it had been abandoned by it in 2009. It was affected by hyperinflation in 2009.

The official zimbabwean dollar is quoted at 165.94 USD against the U.S. Dollar. However, it has been sliding on the black markets, where it trades between 330 to 400 for the greenback.

Since the start of this year, the black market rate has changed from 200 Zimbabwe dollars to the present.

Saturday’s announcement by President Emmerson Mnangagwa was to end the depreciation of Zimbabwe’s currency. He said it threatened Zimbabwe’s economy stability.

Mnangagwa stated in a statement that “Bank lending to the public and private sectors is suspended immediately with immediate effect,”

Unnamed speculators were accused of taking out Zimbabwean dollars at lower interest rates than inflation and then using that money to trade forex.

Others include an increase tax on foreign bank transfers, a higher levies for cash withdrawals exceeding $1,000 and payment of taxes that were previously charged in forex local currency.

Inflation is being driven by devaluation at the black market exchange rate of Zimbabwe dollars.

The year-on-year rate of inflation increased to 96.4% from 60.6% in Jan, and then to 96.4% by April.