Zimbabwe dollar drops to $5 738.72 to the US dollar

The Zimbabwe dollar continued its steady decline to the United States dollar shedding just $20 at the latest auction to average $5 738.217 to the greenback.

Confidence seems to have returned to the local market after the government extended use of the multiple currency by five years to 2030 by which time it hopes to have restored confidence in the local currency.

The country’s central bank has called for increased use of the local currency to increase its demand.

Offers at yesterday’s auction ranged from $5 722 to $5 775 but there are calls to liberalise the market by abandoning the auction and leaving trading to banks.

The black market rate has remained steady at $7 500 but there is so much shortage of hard cash that the indicative cash rate is $4 000.

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