Africa-Press – Zimbabwe. By Agencies
HARARE: In a significant blow to Zimbabwe’s economy, the country’s dollar experienced a sharp decline of 26 percent during Tuesday’s foreign-exchange auction, a Bloomberg report said. The official exchange rate now stands at 1,888 Zimbabwe dollars to the US dollar, compared to 1,404 just a week ago.
This comes in response to a report issued by a government commission, which stated that the currency was overvalued and advocated for the government to relax foreign currency controls.
The latest development brings the official rate closer to the parallel market rate, which ranges between 2,300 and 3,000 Zimbabwe dollars to the US currency.
A joint report by the Competition and Tariff Commission and National Competitiveness Commission has emphasised the need for market forces to determine the exchange rate and prices, suggesting that this approach is unlikely to lead to price increases since manufacturers’ costs are already linked to the parallel market.
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