Zimbabwe dollar could settle at $4 500 to the US dollar

Zimbabwe dollar could settle at $4 500 to the US dollar

The Zimbabwe dollar once again firmed marginally against the United States dollar appreciating by less than 30 cents to settle at $4 505.4232 at today’s wholesale foreign currency auction.

The gap between the lowest and highest offers narrowed to $100 implying that the rate could settle at $4 500. The highest offer was $4 580 and the lowest $4 480.

Zimpricecheck puts the black market rates at between $5 800 and $6 400 but these amounts are difficult to get on the streets with offers just above $5 000 being more realistic.

It, however, puts the cash rate at $3 000, which is too low.

The firming of the Zimbabwe dollar has led to speculation that Zimbabwe might abandon the multiple currency system after the elections but central bank governor John Mangudya says there will be no rush. 

Zimbabwe said it would use the multiple currency regime until the end of 2025.

The response by business to the firming of the local currency has been too slow as the prices in the local currency are still ridiculously high.

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