Another manipulation, say economists as Zimdollar firms against US$

The Zimbabwean dollar (Zimdollar) has for the second time strengthened against the US dollar at the central bank controlled Foreign Currency Auction to Z$5,739.

However, according to market watchers, the monetary authorities have taken out local currency liquidity from the market so that there are few Zim dollars to buy the US Dollar, making the gain artificial.

Apparently, the streets are saying something completely different with the Black Markert Rate swinging around Z$8,700.

The Reserve Bank of Zimbabwe is on record confirming that there is less Zimdollars on the market.

According to analysts, the Harare administration won’t let the local currency float freely because it will expose the lack of the required economic fundamentals.

Zwnews