Zimdollar trades low, as inflation hits highest mark since May 2021

The Zimdollar officially traded at 112.82 to the US$ yesterday however, the local currency traded at over 200 on the parallel market.

Meanwhile companies blamed the country’s forex supply shortfalls, but Reserve Bank of Zimbabwe Governor, John Mangudya attributes the disparity in rates to many businesses accepting payment at parallel market rate.

Meanwhile, Mangudya is not willing to align the official rate to market demands.

Apparently, renowned world economist Steve Hanke insists Zimbabwe should dollarise, as inflation continues on the upward trajectory.

“In this week’s inflation table, Zimbabwe is in the limelight.

“On Jan 13, I measured Zimbabwe’s inflation at 138%/year.

“That’s the highest it’s been since May 2021. Without dollarization, Zimbabwe’s economy is toast.

Zwnews