Zimbabwe’s central bank and industry executives gathered on Friday to discuss methods to stop the local currency’s depreciation against the US dollar, according to the state-controlled Sunday Mail newspaper.
According to the Harare-based journal, Central Bank Governor John Mangudya stated that the way out of the situation was an agreement to promote demand for the local currency in order to raise its value. No further information on the specific measures taken was provided.
Last week, the local currency fell 3.68 per cent to Z$112 per US dollar on the first day of legal trade. On the black market, it trades for less on the parallel market at more than Z$200 per US dollar. The currency’s depreciation is fueling inflation, which hit 61 per cent in December.
In a January 18 interview with Bloomberg News, Mangudya expressed reluctance to act to close a widening gap between the official and black-market rates of the national currency, blaming the disparity on businesses.
