A new decree from President Mnangagwa’s government to abolish the parallel market and shore up the ailing local dollar could prove counter-productive and drive up inflation again, according to traders in the capital.
Before the new policy put in place by President Mnangagwa’s government, the US dollar was trading on the black market at 1:120 Zimbabwean dollars (Z$), while the official exchange rate was $1:Z$85 at the time of writing.
On 26 May, the government passed the Statutory Instrument 127 of 2021 (SI 127) that amends the country’s financial regulations. Its key points are as follows:
