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Reserve Bank of Zimbabwe Governor Dr John Panonetsa Mangudya’s weekly forex auction run by the central bank resumes today Tuesday after a three-week break.It however begins at a time the local Zimbabwean Currency the ZimDollar Zwl is believed to have plunged.
“The last quarter of the year generally is our weakest,” an Economic analyst said. “That’s when forex inflows are low and demand is up.”
Treasury halted payments to government suppliers in August 2022 as part of efforts to stem the currency’s slide. Companies supplying goods and services to the government were blamed for undermining the local currency through charging exorbitant prices. In response to the practice, authorities blacklisted 19 businesses from state contracts late last year.
This helped but this time beginning of the year, the Zim Dollar has Plunged to Record After the Rbz Governor Warned State Suppliers.
The country’s currency plunged to a record in the unauthorized market today after Rbz Governor Dr Mangudya urged suppliers not to buy foreign exchange with payment they recently received from the government.
Zimbabwean dollar traded at between Z$950-Z$1,100 to the US dollar in the parallel market, according to reports on the ground ascertained by TechnoMag, as we monitored unofficial and official rates. That’s the lowest on record, and significantly weaker than the official rate of 671 to the US dollar. Businesses are allowed a 10% mark-up on the authorized price.
Governor Mangudya must however be praised for the fact that, the currency has been relatively stable since May after he introduced gold coins that helped reduce arbitrage opportunities between the official and the black markets. The latest turmoil in the parallel market can be traced to the lack of foreign-exchange sales by the central bank during the holidays, according to another Economic commentator, also confirmed by a monetary policy committee mpc member.
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