The Zimbabwe dollar today dropped by $24.63 to average $5 18.4090 against the United States dollar.
Zimbabwe last week extended the use of multiple currencies, dominated by the United States dollar, to 2030, reassuring a restive nation and the banking sector which had stopped US dollar loans.
Offers ranged from $5 700 to $5 775.
A member of the central bank’s Monetary Policy Committee, Persistence Gwanyanya, said the extension of the use of the US dollar was to nurture confidence whilst supporting increased Zimbabwe dollar usage.
“However, monetary authorities should seek to reduce US dollar dominance in the multiple currency regime. MPC has already issued measures to support this, which include further liberalisation of the forex market,” Gwanyanya said.
The International Monetary Fund has urged Zimbabwe to liberalise the foreign currency market saying the premium over the black market rate which is above 30% is too high.