Reserve Bank of Zimbabwe (RBZ) governor John Mangudya on Monday said the exchange rate for the new transitional currency is unlikely to remain at 2.5 per U.S. dollar by the time tobacco auctions open next week.
Analysts are of the view that Mangudya would move the rate to around 3,5 to the US$ after the governor recently pegged a similar rate for miners, which would still be lower than the parallel market rate of 3,8.
While addressing the Public Accounts Committee (PAC) and the Parliamentary Portfolio Committee on Finance, Mangudya said:
We do believe that before or on that date the rate will have reached its equilibrium. We don’t believe it will still be 2.5 (to the U.S. dollar).
The RBZ last month scrapped its discredited 1:1 dollar peg for surrogate bond notes and electronic dollars.
The RTGS dollar is currently trading at roughly 2.6 to the United States dollar.