Two weeks ago, around 10 Zimdollars bought one US dollar note on the black market. As of Friday, it took 14 Zimdollars to buy one US dollar at interbank exchange rates. Some black market foreign exchange forex dealers believe the Reserve Bank of Zimbabwe might be driving up the value of foreign currencies against the Zimdollar because the central bank needs foreign exchange to finance critical imports such as food and fuel.
Although the central bank did not specify why this action was taken, companies could be using Zimdollar accounts to buy foreign exchange, which fuels downward pressure on the Zimdollar. Bhoroma added that eroding confidence in the homegrown currency is compelling businesses to abandon it. In June, the government outlawed the use of foreign currencies in local transactions in an effort to stem speculative attacks on the Zimdollar, but faith in the homegrown currency continued to founder.
Critics: Zimbabwe’s New Currency Auction Unfairly Favors Big Business
Chris Muronzi. The government dumped the rate in February and launched the RTGS dollar, which encompassed other local denominations.
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It also created an exchange rate for banks — known as an interbank rate — to tame currency fluctuations. Officials hoped the latter move would lure Zimbabweans away from the parallel market, which flourished amid the currency chaos.
Forex auction to resume mid-January: RBZ – The Zimbabwe Mail
Yet shortages of foreign currency have persisted, an urgent problem in a landlocked country that relies heavily on imports. Those shortages can be especially dire for small and medium-sized enterprises, which often need foreign currency quickly to buy imports. Government officials say the new system builds in stability, efficiency and transparency. Critics say the priority list favors large enterprises.
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Janet Guta, whose company specializes in personal protective equipment and telecommunications accessories, welcomes the auction — but only if everyone can use it. Guta wanted to apply for foreign currency last year, but the bank told her she had to wait at least three months for the money. Mubonesi says acquiring foreign currency causes delays in buying imports.
He still uses the parallel market two or three times a week. The gap would have cost Mubonesi an extra Clive Mphambela, spokesperson for the Ministry of Finance and Economic Development, says some small and medium-sized businesses do qualify for the auction. In addition, he says, banks should bid on behalf of clusters of SMEs that are not big enough to take part individually.