In July last year, gold coins were introduced as part of several policy measures to ease demand for the greenback, stabilise the Zimbabwe dollar exchange rate and tame resurgent inflation. But the gold coins have done little to save the local currency that is trading at $1 to $2 100 on t...
Resurgent inflationary pressures came at a time when authorities had been successful in taming inflation from a post-dollarisation high of 837,5 percent in July last year to a two-year low of just over 50 percent in June this year. The rate of increase in prices has largely been driven b...
“If we close the free market, we create the parallel market. Between July and September there was consistency between parallel and official exchange rate of 15-20 percent disparity. “Our wish is to narrow the gap, which is why the RBZ adopted the willing-buyer, willing-seller exchange rate...
"In some cases, loans were accessed as working capital, but diverted to third party entities for purposes of funding purchases of foreign exchange on the auction on behalf of the funding entities," he said. In response, effective from July 1, Mangudya said no bank shall extend a loan to a...
“But the only way to prevent the increase in base money (total money supply) with new cash in the market and the impact on the exchange rate is for the banks to acquire these notes using their RTGS dollar balances. “What we are doing is that we are swapping existing RTGS cash for ...
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Government hopes that the gold coins will stabilise the exchange rate and absorb excess liquidity on the market. They will also be used as collateral if one wants to borrow money from banks. Mangudya said the first batch of the coins was minted outside the country using external agencies. How...
Inflation fell steeply in the first half of the year, from around 363 percent year on year in January to 56 percent in July, before stabilising above 50 percent in August and September. "Developments on the parallel market for foreign exchange are likely to exert further inflationary pressures ...
"The percent incentive scheme was a shadow exchange rate. It went on well when inflation was below five percent. When the inflation went beyond 20 percent in October the 1:1 exchange became unsustainable," said Dr Mangudya. Economists have said the market has received the measures announced by...
“Political risks send a negative signal to potential investors into the country and discourage foreign direct investment (FDI),” Mlambo said. “Low and stable inflation, exchange rate stability, sustained fiscal reforms and reduced debt overhang are characteristics of countries that have attracted sig...