Zim dollar continues on a free fall

By NewsReportLive

The Zimbabwean dollar slid further Tuesday trading at $3 674 to the greenback, according to the central bank’s auction results.

Authorities had hoped for an imminent recovery of the moribund currency when the Zim dollar ended the week at $2 557.

The official rate, albeit more conservative falls short of the parallel market rate.

On the black market, the local currency is trading between $4 500 and $6 000 to the US dollar decimating salaries of impoverished Zimbabweans.

According to economists the local currency has lost 80% value since April as the Zimbabwean dollar witnessed a second carnage in just a decade.

Zimbabwe decommissioned its local currency in 2009 but in 2019, the government announced a Zimdollar comeback along with other stronger currencies.

But authorities have insisted on saving the Zimdollar, with the Finance Ministry publishing a raft of measures to improve Zimdollar use.

According to economist Gift Mugano, the only way to salvage the local currency would be to liberalize the foreign exchange market.

“It will be a miracle for us to be able to reverse the crush of the Zim dollar,” Mugano said.

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