HARARE – The Zimbabwe dollar depreciated 0,84 percent against the US dollar as indicated by the results of the Reserve Bank of Zimbabwe (RBZ) managed foreign currency (forex) auction conducted on Tuesday as analysts call for a market-based exchange rate.
This week’s weighted average was US$1: $87,6653 compared to the US$1:86,9267 weighted average achieved as of last week.
Batanai Matsika, head of research at Morgan & Co, and economist said the fundamental problems with the exchange rate can only be resolved by adopting a more market-based approach and allowing it to find its own level.
“Because of issues of maintaining the rate, this has created arbitrage opportunities that has resulted in a huge gap between the official exchange rate and the parallel market rate, which now averages around $175,” he said.
He noted that the delays by the central bank to release allotted funds will also unsettle the market as businesses…