New York, (New Ziana) – Finance and Economic Development Minister Professor Mthuli Ncube said on Monday government will continue to monitor the architecture of the country’s financial system to close all loopholes that unscrupulous dealers could use to manipulate the exchange rate.
This comes in the wake of last week’s sharp devaluation of the local currency, the Zimbabwe Dollar, which authorities said had been driven by feverish speculation on the black market.
The exchange rate dropped from an average of Z$14 to the greenback within a space of a few days to Z$25 to the USD$, the lowest point the currency had devalued to since the government re-introduced it as the country’s sole trading currency early this year.
Before that, the country used a basket of currencies, particularly the United States Dollar, following the collapse of the Zimbabwe Dollar in 2008.
Last week’s unprecedented devaluation of the local currency prompted the government to close the bank accounts of a number of companies and individuals – suspected to be linked to the currency manipulation – action which immediately arrested the Zimbabwe Dollar’s fall.
Prof. Ncube said the local currency had re-gained much of its lost value, and had now stabilized at around its previous level before last week’s sharp devaluation.
“It’s very clear that we needed to close those loopholes that some have taken advantage of and manipulate the exchange rate of the currency,” he said.
He said there will, henceforth, be close monitoring of developments in the market by the government and monetary authorities, and action will be taken immediately something suspicious is detected.
Prof Ncube is in New York accompanying President Emmerson Mnangagwa to the United Nations General Assembly, where he is also expected to hold meetings with captains of global capital to woo them to invest in Zimbabwe.