Zimbabwe’s foreign exchange crisis worsens – Rayrice Forex News

Zimbabwe’s foreign exchange crisis worsens

Exit customers in the Harare GraniteSide Industries area have been using the local currency POS platform due to network problems.

To circumvent the suspected POS challenges, the exit encourages potential customers to use foreign currency instead.

As Zimbabwe’s dollar depreciates against major currencies, the situation at granite food outlets is affecting many businesses across the country.

The Zimbabwe dollar traded at $ 520 in US1 on Friday.

Two weeks ago, the Zimbabwe dollar was trading at $ 400 against the US dollar.

According to the Food and Agriculture Organization of the United States Agency for International Development (USAID), businesses in the currency crisis are stockpiling basic commodities such as corn, cooking oil and sugar.

The goods are sold at the same fork in the informal market, and in the process increases the risk of starvation.

Traders want to escape US $ 1: ZWL308.52 and US $ 1: ZWL309.06, in forex bidding and interbank markets respectively.

Prominent economist Prosper Chitambara says Zimbabwe’s dollar will continue to depreciate as long as there is a reversal in the foreign exchange market.

“There is a huge mismatch between the demand for foreign exchange, which has been exacerbated by the rising inflation and the dollar supply,” Chithamba said.

“So long as that imbalance persists, it will continue to depreciate.

“I think this test and the depreciation of the zodiac is related to the increase in the price of production, the increase in the price of imports,” he said.

“So how do we look at that?

“It is difficult to solve the problem, especially if we are living in a high inflationary environment, because people have lost confidence and economic agents have lost confidence in the dollar.”

He said the only way to restore confidence in the Zimbabwean dollar was to control inflation.

“How do we do it?”

Chithambara added: “The issue of broader funding needs to be addressed.

“And of course we have another election next year so public spending will go up and the government will have to spend most of the money on inflation that could stimulate or create inflation.”

Inflation rose 131.7% year-on-year to 35.3% year-on-year, compared to 96.4 percent in April.

The increase has slashed wages by almost 184 percent since the beginning of the year.

Last month, a five-member family of Zimbabwe’s Consumer Council needed $ 120,000 a month to survive, due to a $ 98,000 depreciation in April.

Domestic companies have also been hit hard by inflation and currency problems.

Nampak Zimbabwe Limited Paper, Plastic and Metal Manufacturing Company says the economic situation is uncertain due to these macroeconomic problems.

Nampark says its half-year report is due to be completed by March 31, 2022.

“The authorities need to do more to address the macroeconomic challenges facing businesses. We expect the group to remain profitable as a matter of urgency.

Nampark said the presence of foreign exchange is a concern and important for future business.


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