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Zim dollar implodes again

The Zimbabwean dollar has depreciated once more against all major currencies for the third week, falling to ZWL$4712.16: US$1 from ZWL$4604.62: US$1 three weeks ago.
On both the official and black markets, the exchange rate has been comparatively stable in August.
But the value of the Zimbabwean dollar is once more declining.
Analysts are concerned that the local currency may plunge due to government delays in paying farmers and contractors in Zimbabwe dollars.
According to RBZ governor John Mangudya, the bank is in control of the situation even though the margins are still very slim.
“There’s nothing to worry about as the exchange rate remains relatively stable. I think Zimbabweans need prayers as they start panicking with something that is within reach. We have tools to ensure there is no excess liquidity in the market,”he said.
Mangudya said the country’s macroeconomic fundamentals have remained strong to support and sustain the current price and exchange rate stability as attested by the continued favourable balance of payments, low growth in money supply, and a safe and sound banking sector.
“The central bank remains confident that the continued sale of gold coins and gold-backed digital tokens will sustainably take away steam from the store-of-value demand for local currency during the short to medium term, with positive spinoffs on the substance of obtaining price and exchange rate stability. Furthermore, the central bank’s strategic resolve for continued monetary prudence will add further impetus to the positive prospects of the local currency over the medium term. In addition, the ongoing monitoring and surveillance by the Financial Intelligence Unit will effectively minimise incidences of exchange rate manipulation and abnormal pricing practices,” Mangudya said.

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