This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.

Please create a password or click to receive a login link.

Please enter your password or get a login link if you’ve forgotten

Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

Zimbabwe Central Bank Data Shows Local Currency Devalue...

Business Maverick

Business Maverick

Zimbabwe Central Bank Data Shows Local Currency Devalued 40%

A supporter of the opposition Citizens Coalition for Change waves a Zimbabwe flag during an electoral rally at White City Stadium in Bulawayo on 5 March 2022. (Photo: Zinyange Auntony / AFP)
By Bloomberg
09 May 2022 0

The Zimbabwe dollar’s exchange rate was quoted 40% weaker against the U.S. dollar on Monday, a day before the central bank holds it weekly foreign-currency auction meant to establish the official rate.

The currency was priced at 275.79 per dollar on the website of the Reserve Bank of Zimbabwe on Monday compared with 165.99 on Friday. No further detail was given. The move to adopt the interbank rate as the official rate cuts down on the multiple exchange rates developing which also include a parallel-market price of as much as Z$420 per U.S. dollar.

On Saturday, President Emmerson Mnangagwa ordered retailers and wholesalers to adopt the so-called “willing-buyer-willing-seller” interbank rate for their transactions with immediate effect.

“Over time, the auction rate and the interbank rate established through the willing buyer-willing-seller will provide the basis for the orderly unification of the exchange rate,” he said in the televised address. Retailers are allowed to benchmark their pricing to the average interbank rate with a maximum allowable variance of 10%, he said.

Zimbabwe Bankers to Meet Authorities After Order to Halt Lending

The weekly foreign-currency auction — which has been used set the official rate since June 2020 — usually takes place on Tuesday and the updated exchange rate is published at the end of the day by the central bank. The Zimbabwe dollar is the worst-performing currency in Africa this year, having started 2022 at 108.66 per U.S. dollar.

“We are therefore surprised to see an immediately updated mid rate at 275 this morning on the RBZ website,” said Lloyd Mlotshwa, the head of research at the Harare-based IH Securities. “It’s unclear whether we should take that as the new auction rate headed into Tuesday or if they are simply quoting the interbank rate which from this weekend’s announcement will now be the new reference rate.”


Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted