The country’s local currency, Zimdollar is now 91% weaker than it was a year ago and indications are that it is likely to get even worse.
The Zimbabwe dollar traded at Z$8,240 per US dollar on Thursday, down from Z$6,467 earlier this week, according to central bank data.
This week’s drop means that the official rate is now more than 91% down over the past year on both the official and black markets.
The Zimdollar started 2023 at Z$705 to the USD on the official market and around Z$1,000 at the black market.
Authorities are trying to narrow a widening gap between the formal rate and the more widely used black market rate.
The increased weakening of the Zimbabwean dollar is attributed to high demand for the US dollar, a member of central bank’s monetary committee has been quoted as saying.
Authorities see a gap of 10% to 20% between the official and unofficial exchange rates as acceptable, Bloomberg reported, citing Persistence Gwanyanya, a member of RBZ’s monetary policy committee.
Apparently, renowned American economic analyst Steve Hanke is on record saying the Zimdollar is dead and should be buried.
“On January 4, I accurately measured Zimbabwe’s inflation at a STUNNING 1024%/yr.
Zimbabwe takes the prize: The prize of the world’s highest inflation rate.
“Once again, Zimbabwe (1024%/yr), Argentina (198%/yr), Syria (153%/yr), Lebanon (112%/yr), & Venezuela (103%/yr) come in as the world’s top five inflaters,” he posted recently.
Zwnews
