Zimbabwe central bank, business explore way to halt currency plunge

accreditation
0:00
play article
Subscribers can listen to this article
The Zimbabwean dollar's collapse is stoking inflation.
The Zimbabwean dollar's collapse is stoking inflation.
Dan Kitwood/Getty Images

Zimbabwe's central bank and business leaders met Friday to explore ways to halt the plunge of the local currency against the US 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 US dollar. It trades for less on the parallel market at more than Z$200 per US dollar. The currency's collapse is stoking inflation, which reached an annual 61% in December.

In an interview with Bloomberg News on January 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.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
15.85
+0.1%
Rand - Pound
19.77
+0.1%
Rand - Euro
16.77
+0.1%
Rand - Aus dollar
11.19
-0.1%
Rand - Yen
0.12
+0.2%
Gold
1,845.73
+0.2%
Silver
22.01
+0.4%
Palladium
1,987.50
-1.1%
Platinum
964.00
-0.3%
Brent Crude
112.04
+2.6%
Top 40
61,513
-0.3%
All Share
68,127
-0.2%
Resource 10
72,974
+2.3%
Industrial 25
73,791
-2.7%
Financial 15
15,857
+0.8%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot