Zimbabwe’s currency rout slows as central bank touts $500m plan

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Zimbabwe’s currency rout slows as central bank touts $500m plan
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The loan is said to be a platinum-backed four-year facility obtained from the African Export-Import Bank

Harare — Zimbabwe may not yet have pushed through with its plan to alleviate a crippling dollar shortage, but its currency has already strengthened on the black market.

Governor John Mangudya said on Saturday the injection would “go a long way to stabilise the exchange rates and prices of goods and services,” and finance minister Mthuli Ncube said the money is from “international banks”, without naming them. Zimbabwe revamped its currency system in February as long queues formed for fuel, medicine and other imported goods. Deadly protests had erupted a month earlier after the government more than doubled fuel prices.

While the black-market rate has now strengthened to 5.5 per dollar from 7, it is still almost 40% weaker than the official value of 3.48.

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