Zimbabwe dollar breaches $5 000 mark as it continues its slide against the US dollar

The Zimbabwe dollar today fell by more than $300, its biggest fall since last month’s elections, to average $5 015.4279 against the United States dollar.

Finance Minister Mthuli Ncube said he was baffled by the decline of the local currency because all the fundamentals were strong.

“Our fundamentals are strong, we have a current account surplus, and we have had that for the last five years. I don’t remember that happening in Zimbabwe since 1980 and most countries will kill for that. Right now we are on a strong growth trajectory,” he was quoted as saying.

The local currency plunged against the United States dollar in June soon after the announcement of harmonised elections but the government introduced measures which shored up the local currency.

These included hiking the key interest rate and insisting that companies pay their taxes in local currency.

Companies are due to make their quarterly payments at the end of this month.

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