Zimbabwe loses US$13bn from exchange rate distortions

The cost of Zimbabwe’s exchange rate distortions, has impacted negatively on the country’s economy.

Research by Confederation of Zimbabwean Industries and World Bank estimates that Treasury lost at least US$3bn in potential revenue between 2020-2023 due to its handling of the exchange rate.

This includes least US$1.15bn potentially lost to informalisation, plus losses from the overvalued currency and payments hit by inflation.

Though University of Zimbabwe Economics lecturer Carren Pindiriri says these figures may be conservative.

This came out during the Zimbabwe Economic Development Conference (ZEDCON) held at Elephant Hills Resort in Victoria Falls recently.

The Conference was running under the theme, “Building Resilience and Driving Economic Transformation under Climate Change.”

The objective of ZEDCON 2024 is to bring together researchers, academics, development partners, corporates, economic think tanks and representative organisations to share knowledge, experiences and best practices on how to build resilience and drive economic transformation in the face of climate change.

In terms of eligibility, researchers, academics, development partners, corporates, economic think tanks and representative organisations submitted abstracts for the conference.

Zwnews