Zimbabwe dollar down to $1 021.21 to the US dollar

The Zimbabwe dollar today shed $21.18 to average $1 021.2072 against the United States dollar as the central bank said it would soon be introducing a gold-backed digital currency to shore up the local currency.

The Zimbabwe dollar stabilised for some time after the central bank introduced gold-coins but it has started falling of late, though 77% of the transactions in the country are now in United States dollars.

Finance Minister Mthuli Ncube has ruled out scrapping the local currency saying it is performing its role as it has boosted local manufacturing. Reports say 80% of the goods on supermarket shelves are now produced locally.

Offers at today’s auction ranged from $1 000 to $1 200 but the black market rate is as high as $1 800.

A total of US$20.7 million was allotted to 295 small businesses and 317 large firms today.

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