The local currency, the RTGS dollar or ZWL$ has fallen by 140 per cent since its introduction on February 20 by the Reserve Bank of Zimbabwe Governor John Mangudya.
The RTGS4 is now trading at USD 1:6 on the RBZ monitored interbank market.
Prior to the RTGS$’s introduction in February, local currencies were made up of bond notes and coins, bank balances and mobile money, which were supposedly at par with the greenback.
The RTGS$ merged all the “currencies” and its value was immediately floated such that when it debuted, it was $2.50 to the US dollar.
As of Tuesday, the black market rate averaged US$1: RTGS$8,70.
While monetary authorities insist that the two markets will eventually coalesce, analysts are of the view that there will never be a convergence unless the foreign currency is readily available on the official interbank market.
Whatever Prof Mthuli predicated is actually happening and this will definitely leave us on a better economic state as a nation. I feel sorry to those trading at these black markets rates, they will be shocked one day.
“….has fallen by 140 per cent”. How did you arrive at 140%? How can this value decline by more than 100%?