Zim dollar ‘is imploding again and it’s the government’s fault’

World

Zim dollar ‘is imploding again and it’s the government’s fault’

Industry chamber blames authorities for currency instability, central bank to address parallel-market volatility

Godfrey Marawanyika and Ray Ndlovu

Zimbabwe’s currency faces collapse unless the authorities implement policy measures needed to support it, the country’s main business lobby group said.

Instability in the foreign-exchange market is being driven by an unrelenting increase in money supply, increasing imports and long delays in settlement at the central bank’s weekly currency auction, the Chamber of Zimbabwe Industries said in a statement. 

“We find ourselves in a situation that could and should have been avoided had the appropriate policy prescriptions been in place,” the chamber said. “We are of course concerned about the response by the authorities so far, which was to blame players in the foreign currency markets as the sole cause of the currency instability.”..

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