A volatile foreign exchange crisis hit the country this week with the rate peaking at $25 to the US dollar in the formal market by Thursday and closing the day on Friday at $18.00.

The sharp rise in the exchange rate and an inexplicable rout of the local unit caused a spike in prices of goods and services as most traders claim they peg prices against the US dollar.

Both Finance and Economic Development Minister Professor Mthuli Ncube and his permanent secretary Mr George Guvamatanga could not be reached for comment last night on what triggered the volatility in exchange rates, as they were not picking their mobile phones, amid wide speculation on social media and on street corners.

Reserve Bank of Zimbabwe (RBZ) Deputy Governor Dr Kupukile Mlambo was also not answering his phone.

However, the market was awash with rumours that the RBZ had cracked the whip on bureaux de change and firms, thought to be fuelling the runaway exchange rate.

A statement purportedly from the RBZ circulated widely on social media yesterday suggesting the apex bank had moved to freeze the accounts of some companies.

The authenticity of the correspondence directed to banks could not immediately be verify.