Chinese firm uses Zimbabwe government money to fuel back market

The Reserve Bank of Zimbabwe has frozen the bank accounts of Chinese construction company, China Nanchang, for allegedly injecting millions of dollars into the black market.

The bank did not say how much money the Chinese firm put into the market but the exchange rate fell from 22:1 to 25:1.

The Old Mutual Implied Rate plunged to a record 31.15 yesterday.

Eddie Cross, a member of the central bank’s Monetary Policy Committee, said the Chinese company had just been paid by the government for its work on the Gwayi-Shangani dam.

It flooded the black market with money to buy United States dollars.

Ironically, this comes after the committee had just stated that the local currency had held steady for four months.

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