Zimbabwe Central Bank, Business Meet on Currency Fall

Spread the love

(Bloomberg) — Zimbabwe’s central bank and business leaders met Friday to explore ways to halt the plunge of the local currency against the U.S. dollar, the state-controlled Sunday Mail newspaper reported on Sunday.

Central Bank Governor John Mangudya said the main outcome was an agreement to increase demand for the local currency in order to boost its value, the Harare-based publication reported.  No further details were provided on the specific measures adopted.

The local unit weakened 3.68% on the first day of official trade last week to Z$112 per U.S. dollar. It trades for less on the parallel market at more than Z$200 per U.S. dollar. The currency’s collapse is stoking inflation, which reached an annual 61% in December.

In an interview with Bloomberg News on Jan. 18, Mangudya expressed reluctance to act to narrow a widening gap between the national currency’s official and black market rates, saying businesses are to blame for the disparity.