Confusion on real Zimdollar value as it gains agai...

Confusion on real Zimdollar value as it gains again at the auction

Zim Now Writer

The Zimbabwe dollar has gained 930.63 points from last Tuesday’s auction rate to an average $5 395.9619 with the highest offer at $5 550 and the lowest at $5 200.

While the auction rate is used by government agencies, Zimbabwean individuals and businesses tend to peg the value of the currency on the black market rates.

But the real value of the local currency is now guess work as black market rates are wildly divergent, ranging from $3 000 to $8 000 per US dollar.

Zimpricecheck puts the black market swipe rate at $8 400 and the mobile money rate at $7 700. But finding a dealer willing to buy US dollars at these rates is a challenge with most dealers only adding a few hundred points to the official rate.

Meanwhile in downtown, vendors and shops are pegging the local dollar cash value at $3 000 per US dollar.

Although the local currency has gained by almost 2 000 points over the past three weeks, no major shop has implemented corresponding downward variations in pricing with the market still preferring US dollars to the local currencies.

Analysts have said that the stabilisation and apparent rallying of the local currency is artificially induced and is not sustainable as the rate is likely to shoot up again once governments starts releasing funds to contractors.