News / National
Black market rates crash
12 Oct 2018 at 18:28hrs | Views
Confidence is slowly returning to Zimbabwe's capital markets as parallel market rates dropped again today (Friday) after government's assurances of a 1 as to 1 real time gross settlement (RTGS) balances into the United States dollar as well as persistent use of the multi-currency system.
Money gambling or even speculation can come with better returns or even more wealth, however, those involved may also lose more than the potential gains.
With a free fall of the parallel market in Zimbabwe since yesterday (Thursday) many are counting on the losses as opposed to potential gains.
The ZBC News today established that the greenback which by mid week was trading at US$100 to as much as $550 bond notes or electronic transfers dropped to US$100 fetching an average of $120 bond notes or transfers.
Dealers, traders and public who spoke to ZBC News said the situation has become so bad with the rates fluctuating willy-nilly adding that really it causes panic to the general publics.
The public is waiting to see whether the drop in black market rates shall impact on prices of commodities which were now being quoted in the US dollar.
"We want prices to go down and return to normal, we are yet to see what will happen we are just hoping the situation will improve in our country," said some of the citizens.
The prevailing market fundamentals being implemented by Treasury might lead to a further drop on the parallel market rates said an economist Mr John Robertson.
"It depends on what might arise but the situation might continue," he said.
The Minister of Finance and Economic Development Professor Mthuli Ncube this week said that the government had secured a loan facility from the Afreximbank to guarantee the convertible value of RTGS into US dollar.
The policy coherency reiterated by President Emmerson Mnangagwa on the continuation of the multi-currency system further provided the confidence to guarantee a stable macro economic framework for local and international businesses.
Money gambling or even speculation can come with better returns or even more wealth, however, those involved may also lose more than the potential gains.
With a free fall of the parallel market in Zimbabwe since yesterday (Thursday) many are counting on the losses as opposed to potential gains.
The ZBC News today established that the greenback which by mid week was trading at US$100 to as much as $550 bond notes or electronic transfers dropped to US$100 fetching an average of $120 bond notes or transfers.
Dealers, traders and public who spoke to ZBC News said the situation has become so bad with the rates fluctuating willy-nilly adding that really it causes panic to the general publics.
The public is waiting to see whether the drop in black market rates shall impact on prices of commodities which were now being quoted in the US dollar.
"We want prices to go down and return to normal, we are yet to see what will happen we are just hoping the situation will improve in our country," said some of the citizens.
The prevailing market fundamentals being implemented by Treasury might lead to a further drop on the parallel market rates said an economist Mr John Robertson.
"It depends on what might arise but the situation might continue," he said.
The Minister of Finance and Economic Development Professor Mthuli Ncube this week said that the government had secured a loan facility from the Afreximbank to guarantee the convertible value of RTGS into US dollar.
The policy coherency reiterated by President Emmerson Mnangagwa on the continuation of the multi-currency system further provided the confidence to guarantee a stable macro economic framework for local and international businesses.
Source - zbc
