The appropriate exchange rate between the Zimbabwean dollar and the United States dollar should hover around US$1:ZWL$5,6 based on “founded quantitative estimates”, Finance and Economic Development Minister Mthuli Ncube, has said.

While acknowledging the prevailing speculation and attendant exchange rate distortions in the market, Minister Ncube, in a public notice on exchange rate determination, suggested that the devaluation of the local currency was being exaggerated by unscrupulous elements.

As a result, this has seen exchange rate level spike above US$1: ZWL$20 within a few days last week, compared to a stable ratio of between 1:8.5 to 1:10 on the interbank market, since the re-introduction of the Zimbabwean dollar in June this year.

The Treasury boss said a lower exchange rate was appropriate for Zimbabwe but noted several limitations exist, both conceptual and concerning the availability of data when trying to establish the appropriate exchange rate level for the country.State media