The Zimbabwean dollar exchange rate on the interbank and parallel market is fast losing its purchasing power, with relevant authorities being called upon to urgently intervene to arrest the situation which is threatening the economic gains recorded so far.
The current fluctuations in the exchange rate being experienced in the country are threatening the macro-economic environment stability.
Economic experts say the recent developments where there has been an accelerated depreciation of the local currency will have severe negative effects on investment, savings and income if left unchecked thereby derailing the country’s growth prospects.
“There is now reason for authorities to be worried as the level at which the rate is increasing is getting out of hand,” Zimbabwe National Chamber of Commerce CEO, Mr Christopher Mugaga said.
Given the importance real exchange rate brings to an economy in as far as trade competitiveness is concerned, authorities need to strive to ensure stability and certainty on the economy’s exchange rate system.