Zimbabwe Black Market Gap Vanishes After Central Bank Intervenes 

Source: Zimbabwe Black Market Gap Vanishes After Central Bank Intervenes – Bloomberg

  •  Central bank tightened regulations for bureaux de change
  •  Exchange rate was pegged at parity to U.S. dollar in February

The gap between Zimbabwe’s black market and official currency rates vanished after the central bank tightened regulations on trade in foreign exchange by bureau de change operators.

On Monday, black market rates for the Zimbabwe dollar ranged from 14.7 to 15 to the U.S. dollar, according to Marketwatch.co.zw., a site run by financial analysts. The official rate was at a record low of 14.91, according to the Reserve Bank of Zimbabwe. The central bank said on Sept. 21 that bureau de change rates would need to be within 7% of the official rate after they slumped to as low as 23 to the U.S. dollar.

As recently as February the official rate was pegged at parity with the U.S. dollar. With a worsening food crisis and insufficient funds to pay for wheat and fuel imports, the currency had collapsed in line with the economy. While the release of annual inflation figures has been suspended until next year, analysts estimate the rate to be as high as 918%.

The central bank also froze the accounts of the country’s largest fuel supplier and car dealer, both of which have strong links to the government. No reasons for the decision were given by the authorities.

“We took some action,” said President Emmerson Mnangagwa, according to the state-controlled Herald newspaper. “We have now arrested the galloping rate which was galloping from about eight, within a few days it had gone up by 10 and 20.”

COMMENTS

WORDPRESS: 2
  • comment-avatar
    ace mukadota 2 years ago

    Talk is cheap comrades – the gap vanished for about 5 minutes. Its still better to hold onto the USD rather than the new monopoly money called RTGS or zollars.
    Greshams law will prove itself top once again while the half wits at RBOZ think they can fool the market.
    Best to visit marketwatch.co.zw – best site that shows all the different rates in ZW

  • comment-avatar
    Tendai 2 years ago

    Its a fake news from the Government , I am looking for US$ right now to pay for a consignment ready in JHB and the supplier want cash upfront before he loads , Tauya is waitng to collect for me ………and I cannot get any US $ for any price , not 20 or even 30 OR 40

    I am US$7,000 short on a US$12,600 load , but nothing is available