Is this the kick in the back side that our Zimbabwean dollar needed? After the change of policy by the Reserve Bank from the fixed exchange rate to the willing buyer willing seller policy on Wednesday, black market exchange rates have been falling. From a high rate of £1 to ZW$420 million, the rate has fallen to as low as £1 to ZW$240 million. Who could have thought the exchange rate can drop by half in a few days.
The sudden and massive drop in the exchange rate surely caught some of us in the diaspora by surprise. That was a major drop in the value of the money we send back home. I was probably lucky to get someone changing at just over 400 million.
Do you think the exchange rate will continue falling in reaction to the change in policy by the Reserve Bank. Could this be the end of the black market?
I doubt it, I don’t think the fall in exchange rates will last long. This might just be a short term reaction in the exchange rate market, the rate will surely start rising again. But some individual black market traders will find themselves out of business.
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Sun, May 4, 2008
Money Matters