Zimbabwe narrows premium on black market rate from 300 to 26% in three months

The introduction of the foreign currency auction on 23 June has seen the premium on the black market rate against the official rate narrow from 300 percent to 26.4 percent, Finance Minister Mthuli Ncube said.

The Zimbabwe dollar was pegged at 25:1 before the auction and it fell to 83.40 on 25 August and has been firming bit by bit since and stands at 81.44.

Even the defiant Old Mutual Implied Rate which continued to fall peaking at 146.28 last week has been on the decline and was at 126.09 yesterday.

Ncube said price stability was now visible and inflation which stood at 761% in August could end the year at 50%.

The next foreign exchange auction is on today.

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