ZW$ official rate closes parallel market gap, analysts say move is positive
Business Reporter
THE Zim dollar rate tumbled by 43% on the Reserve Bank of Zimbabwe (RBZ) Foreign Exchange Auction market this effectively closing the parallel market gap leaving market watchers describing the developments as positive.
A trading update released at the close of trading Tuesday shows that the official exchange rate hit US$1:ZW$3 673 to signify a 42,5% decrease rate in just one week.
A fortnight ago, the exchange rate depreciated to US$1: ZWL 1 888 down from US$1: ZWL1 404 signifying a 34% decrease inside just one week.
Three weeks ago, the ZW$ recorded another 14% fall recorded over and above the 36,4% decline recorded last week which saw the exchange rate weakening to US$1:ZW$2 577.
The developments come at a time when the parallel market rate is hovering around US$1:ZW$ 4 000 with US$1: ZWL3 500 being the readily available premium on the streets.
Retail outlets are reportedly demanding higher premiums as they hedge through forward pricing to protect their stocks against future uncertainties.
Market watchers said the current rates are positive and indicate improvements in the RBZ Auction efficiencies.
However , members of the public have su amid calls for increased discipline on the money supply side as a lasting solution.
