Currency speculators, according to the central bank, are fueling currency volatility, which leads to price instability.
According to Business Times, the Zimbabwe dollar was trading on the parallel market last week at ZWL$950:US$1 from about ZWL$800:US$1 two weeks earlier.
The Zimbabwe dollar was trading at ZWL$671.44: US$1 at the auction system last week, down from ZWL$654.86: US$1 two weeks before.
Stephen Moyo, the Reserve Bank of Zimbabwe’s (RBZ) senior economist, told stakeholders in Bulawayo last week:
We are collaborating with other government agencies, such as the Financial Intelligence Unit, to ensure that such behavior is minimized, because speculators contribute to a lot of speculation, which contributes to currency destabilization.
So, all you quick-rich speculators, your days are numbered, and the long arm of the law will deal with you. There will be little speculation.
Forward pricing strategies have been pursued by businesses, which have a negative influence on inflation and exchange rate expectations.
Furthermore, informal companies are abandoning local money in favor of exchanging practically all items in US dollars.
In other news,
Former Vice President’s son lover spared jail
Former Vice President John Landa Nkomo’s son Sandlasami’s ex-lover who broke into his house as punishment for dumping her was spared the agony of jail life when she appeared in court charged with unlawful entry and theft.
Tinevimbo Hove (22) pleaded guilty to both charges when she appeared before Bulawayo magistrate Max Ncube.
The court heard that Sandlasami’s romance with his long-time lover went sour forcing him to terminate the…continue reading