Zimbabwe devalues currency; 10B becomes 1 dollar (now THAT'S a devaluation)

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Source: ap

HARARE, Zimbabwe - Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country's reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country's economic and political unraveling.

The longtime ruler issued the warning in a televised address to the nation as South Africa's President Thabo Mbeki flew in to meet with him about stalled power-sharing talks.

Mbeki insisted Tuesday that the talks that started last Thursday were going well and had simply adjourned on Monday.

But several officials said Mugabe's negotiators left for home and opposition leader Morgan Tsvangirai went to South Africa, the venue of the talks, after they deadlocked over who would lead the "inclusive" government under negotiation. The officials spoke on condition of anonymity because all parties agreed to a media blackout surrounding the talks.

Read more: http://news.yahoo.com/s/ap/20080730/ap_on_re_af/zimbabwe