Zimbabwe forex auction rate remains above interbank rate

The Zimbabwe foreign currency auction rate today remained above the interbank rate which fell to $304.4223 to the United States dollar against yesterday’s auction rate of $308.5201.

The black market rates remained unmoved at $360 for cash to $450 for swipe and zipit transactions.

The interbank rate is based on a willing-seller-willing buyer concept, making one wonder what is driving the black market rate.

Two economists, Gift Mugano and Tony Hawkins, have predicted that the Zimbabwe dollar will be dead by this month but Finance Minister Mthuli Ncube was optimistic that measures introduced by the government will shore up the local currency.

The measures included paying local contractors half of their fees in United States dollars and staggering the payment of the Zimbabwe dollar portion so that huge sums are not offloaded onto the parallel market.

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