Zimbabwe’s new currency weakens on interbank market

Business

Zimbabwe’s new currency traded at 2.7 against the U.S. dollar on the interbank market on Thursday, its weakest level since the central bank last month removed a peg for its surrogate bond notes and electronic dollars, official data showed.

Harare ditched the discredited 1:1 dollar official peg on Feb. 20, and merged the bond notes and electronic dollars into a transitional currency called the RTGS dollar.

The value of that currency had held unchanged at 2.5 to the U.S. dollar since Feb. 22, leading to accusations the central bank was manipulating the exchange rate.

Reserve Bank of Zimbabwe (RBZ) data showed the mid rate was at 2.7 to the dollar on Thursday.

Banks are allowed to buy and sell U.S. dollars at 2.5 percent either side of that rate.

Governor John Mangudya told parliament on Monday that he expected the RTGS dollar to weaken further by the time important tobacco auctions open next Wednesday.

 

SowetanLIVE

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