Zimbabwe dollar narrows gap with black market rate as it falls to $308.52 to the US dollar

The Zimbabwe dollar today fell by $17.63 to average $308.5201 to the United States dollar down from $290.8876 last week.

It has narrowed the gap with the black market rate which now ranges from $360 to $450 depending on the mode of payment but was $7 more than the prevailing interbank rate.

Zimpricecheck noted the interbank rate as $301.4994

The local currency has managed to sustain itself against the black market rate for most of this month but the auction rate dropped from $165.99 on 3 May.

Some economists have predicted that the Zimbabwe dollar will collapse next month which begins tomorrow.

A total of US$25.6 million was allotted at today’s auction with US$4.4 million going to 613 small and medium enterprises and US$21.2 million to 235 large companies.

Offers ranged from $290 to $340.

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.