The black market rate for USD is on an upward trend despite efforts by The Reserve Bank of Zimbabwe to contain the loss in value of the local RTGS Dollar.
Last week on Friday, the exchange rate between the United States Dollar and local Real-Time Gross Settlement dropped from a High of 23 RTGS for 1 USD after The RBZ closed accounts that belonged to Sakunda.
However, the intervention by the RBZ seems to have failed as the rate has once again risen to 19.5 RTGS for 1 USD. At the time of publication, the parallel market was competing for the scarce USD on the market with the rate increasing every hour with no sign of stability insight.
Notwithstanding the distinguishable history of the destabilizing effects of black markets, the Zimbabwean government’s industrial policy stance keeps gravitating towards the direction which will perpetuate the continued existence of parallel markets. In our homeland, parallel markets are metaphorically the nation’s brain tumor.
Most participants in black markets don’t want to act illegally, but because they lack the ability to work legally.