ZNCC CEO Says "Authorities Should Be Worried" By Fluctuating Exchange Rates

Zimbabwe National Chamber of Commerce CEO, Mr Christopher Mugaga has said said that the depreciation of the local currency against other currencies should be a cause for concern for the government.

Speaking to ZBC News, Mugaga said:

There is now reason for authorities to be worried as the level at which the rate is increasing is getting out of hand.

His remarks come when the local currency is shedding value at an unparalleled pace. Bloomberg, a USA publication recently reported that the Zimbabwean currency crisis was the worst globally.

Authorities have over the past 24 months been introducing measures to sustain the local currency and all measures have so far failed to prove to be up for the task.

The government this year outlawed the use of all foreign currencies for domestic transactions in an endeavour to reduce pressure on the Real Time Gross Settlement (RTGS) dollar.

There were signs of stabilisation immediately after the development that was effected by Statutory Instrument 142 of 2019. Stability was however not for a sustained period of time.

As of Thursday, 19 September, economic research institutes such as Market Watch, reported that rates went up twice on the parallel market.

Interbank Rates have also been soaring lately, prompting prices of all commodities to go up as well.

The currency crisis in the country has had an impact on workers’ salaries and wages as they were eroded by inflation.

More: ZBC News