Friday, 11 July 2008
The Old Mutual Implied Rate
In Zimbabwe, you have to think laterally if you are to value anything. One example of this is the Old Mutual Implied Rate ('OMIR'). This calculation is a broad unofficial proxy for the value of the Zimbabwe Dollar to the US$ based on the relative values of shares on the London and Zimbabwe Stock Exchanges. With hyperinflation and a fixed official rate, it is the only reliable way to know what the real exchange rate is.