Besides introducing the auction, the government also cracked down on Ecocash, the country’s biggest mobile money platform and accused it of creating $8.4 billion in phantom money.
This translates to just over US$102 800 at today’s rate but was double that in February using the black market rate at the time.
The government has, however, not been able to crack down on the Old Mutual Implied Rate although it barred Old Mutual from trading on the Zimbabwe Stock Exchange.
Old Mutual will be listed on the Victoria Falls Stock Exchange which will trade in foreign currency and is part of the ZSE.
The OMIR is supposed to be the difference between the price of Old Mutual shares on the London Stock Exchange and the Zimbabwe Stock Exchange and is tradable, that is, it has virtually become a form of currency since the hyperinflation years.
Although it initially responded to activities on the foreign exchange auction, it started defying this on 25 August is at $130.98 today.
The Zimbabwe dollar is trading at $81.71 officially.
“The Old Mutual is not even trading so how they get an OMIR Rate is a mystery,” was all Cross could say.
To receive Insider headlines just click on the link below:
https://chat.whatsapp.com/IjKB2tQriIv3s0CUZMVUPS
(313 VIEWS)
Page: 1 2
Zimbabwe is among the top 30 countries in the world with the widest gap between…
Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…
Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…
The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…
Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…
Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…