Foreign currency exchange rates have once again started going up after a week of a recession that was attributed to less demand due to the national lockdown and closure of borders to stop the spread of the novel coronavirus.
The Zimbabwe dollar was this Wednesday being traded at around 45 per United States dollar up from around 38 the previous week.
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The lockdown reduced demand for cash and foreign currency in particular as crossborder traders and most of the traders have suspended business.
Citizens were now preferring electronic money as it enables them to transact from the comfort of their homes, the most viable option at the moment.
We present below yesterday’s forex rates as reported by various financial research institutes.
- OMIR $66.15
- USD to ZWL$ zimrates.com $45.50
- USD to ZWL$ zwl365.com $44.60
- USD to ZWL$ bluemari.info $43.00
- USD to BOND: zimrates.com $33.2
The local currency then further plummeted today as follows:
- OMIR $58.22
- USD to ZWL$ zimrates.com $49
- USD to ZWL$ zwl365.com $48
- USD to ZWL$ bluemari.info $44-$47
- USD to BOND: zimrates.com $35.70
It is assumed that panic buying that was witnessed in the recent past worsened inflation resulting in the Zimbabwe dollar shedding value against other currencies.
Parallel market traders who had suspended business are now back on the streets as a result of the rise in the rates. The development resonates with the observation by Investopedia who say that exchange rates play a vital role in a country’s level of trade.