The Zimbabwe dollar has in the recent past continued to gain value against the United States dollar assumably due to the Reserve Bank of Zimbabwe (RBZ)’s recent relaxation of Statutory Instrument 142 of 2019 which prohibited the use of all foreign currencies for domestic transactions the lockdown over coronavirus.
Before Thursday last week, the Zimbabwe dollar was on a freefall and was as low as 45 dollars for one United States dollar. Today rates are estimated at between 38 and 36 Zimbabwe dollars for one United States dollar.
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The Old Mutual Implied Rate which had reached about 70 Zimbabwe dollars a week ago is today at 62 for one United States dollar.
Analysts believe that the national lockdown reduced demand for the United States dollar as cross border traders and importers are currently grounded.
Others also say that the recovery of the Zimbabwe dollar is an indication that there are some individuals who are manipulating rates who were contained by the lockdown.
Meanwhile, the government refuted claims that it had dollarised adding that traders must continue charging their commodities in the local currency.
Ironically, the central bank said individuals with free funds can now use foreign currency for domestic transactions.