Zim Dollar Crashes Again, Two Weeks After Mnangagwa’s Self-Inauguration
17 September 2023
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The Reserve Bank Governor, John Mangudya, has admitted that the Zimbabwean dollar continuously loses value and called for prayers.

The Central Bank Boss, however, urged Zimbabweans not to panic, promising to term the inflationary environment.

The official and street rates have been comparatively stable in August, but last week, the local unit fell to ZWL$4 712.16: US$1 from ZWL$4 604.62: US$1 three weeks ago.

Business Times quoted Mangudya as saying the central bank is in control of the situation. He said:

There’s nothing to worry about as the exchange rate remains relatively stable. I think Zimbabweans need prayers as they start panicking with something that is within reach. We have tools to ensure there is no excess liquidity in the market.

The central bank remains confident that the continued sale of gold coins and gold-backed digital tokens will sustainably take away steam from the store-of-value demand for local currency during the short to medium term, with positive spinoffs on the substance of obtaining price and exchange rate stability.

Furthermore, the central bank’s strategic resolve for continued monetary prudence will add further impetus to the positive prospects of the local currency over the medium term.

In addition, the ongoing monitoring and surveillance by the Financial Intelligence Unit will effectively minimise incidences of exchange rate manipulation and abnormal pricing practices.

Meanwhile, Finance and Investment Promotion Minister Mthuli Ncube said that it is baffling that a foreign currency parallel market still exists in Zimbabwe.

Ncube said the parallel market “shouldn’t even exist” as “every piece of policy that is necessary for a stable currency has been put in place”.