rampant black market

Zimbabwe: Currency crisis may be compounded as election looms

By The Africa Report

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Posted on April 24, 2023 13:25

© Zimbabwe’s new two dollar banknotes and coins are shown outside a bank in Harare, Zimbabwe, November 12, 2019. REUTERS — Zimbabwe’s new two dollar banknotes and coins are shown outside a bank in Harare, Zimbabwe, November 12, 2019. REUTERS

The Zimbabwe dollar (ZWL) continues to depreciate uncontrollably, with the parallel market rate double that of the central bank amid severely dwindled foreign currency inflows. Next to economic dynamics, the looming election in the Southern African nation portends a further slide.

As of 21 April 2023, the Reserve Bank of Zimbabwe’s (RBZ) exchange rate stood at ZW$982. The black market rate is currently as high as ZW$1900, a huge cap that diminishes foreign investors’ appetite.

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