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Parallel Market Forex Rate Will Hit 500 In A Few Months - Biti

Parallel Market Forex Rate Will Hit 500 In A Few Months - Biti

Former Finance Minister Tendai Biti has predicted that the depreciating Zimbabwe dollar will trade at $500 to the United States dollar in a few months.

The official rate on the Reserve Bank of Zimbabwe (RBZ) auction was $108.6660 to the greenback when the last auction was done on Tuesday, 14 December 2021.

On the parallel market, however, the Zimbabwe dollar trades at over $210 to the United States dollar.

Biti told NewsDay that the 2022 National Budget presented by Finance and Economic Development Minister Mthuli Ncube in November is “technically unsound”. Said Biti:

In a few months, it will hit 500, the rising rate has dramatic inflationary consequences and with half of our people living in poverty and 95% unemployed.

This only means the worst for our people and we have Ncube who is the quintessential definition of failure.

This is one of the most dishonest budgets ever presented. It’s a technically unsound budget.

It doesn’t meet the test for credibility and as I have said consistently this was a man just going through a ritualistic formality simply because section 302 of the Constitution demands that he has to go through the process.

Ncube announced a $927.3 billion budget for 2022.

More: NewsDay

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20 Comments

Muzezuru 6 months ago

Eventually ichazongosvika pa500, taura mwedzi yacho chaiyo tione kuti zvinoitika here coz zvaDecember zvawakataura hazvina kuitika


Chipezeze 6 months ago

Toisa imi vaBiti kaaa munongohumana ndimi vamwe...


Mangisi Muchoni 6 months ago

Muno mama chete nayo economy iyo haina propaganda


Zman 6 months ago

Takagara tatozviona kare zvichangotanga isu kuti zvechi auction Chavo chekunyebera kunge vakadzidza hazvimboshandi mhani nhasi uno chero chikanzi chave pa1:500 ini handitomboshamisiki bcz ndakagara ndichitongozviziva kuti hazvibude. Infact ini pandakangonzwa ana blaz vachitaura Gore Riya vachiti gedye gedye bond neUSA ndikati mhaihweee tatomama futizve nevanhu vaya vafunga kuvhundutsira inflation nepfumo zvekare. Manje njuga dzezvemari hadzimbodi nhema bcz nhema dzinongobuda pachena


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Williie 6 months ago

TANETA NENHEMA DZABITI. HAANA KUSIYANA JONATHAN MOYO NAYEWO UYOYI


Four 6 months ago

@Willie moziva economics here? Tarisa history yakaitika kunana 2006-2008. The xchange rate shld not be controlled by the Central Bank. Let the markert forces determine the rate. Z$ is a volatile currency. Cant yu see even the gvt is pegging its services in USD. This alone tells yu kuti that rate yataurwa naBiti is realistic. It mit not take more than 3months.

Rutendo mapurisa 6 months ago

Aaah ndezvavo let them choose 1 agreement not kungoita ma changes every time


Shadows 6 months ago

Anorwarawo uyo. Is always negative about everything. Haana chaanoziva. Kurwara kwamupinda mumusoro. Let's be positive about our country. 500 or 1000 ,kufunga kwakewo BT tichaona chokwadi paground. Being an opposition activist hazvirevi kungoopposer everything,. Be constructive


Bhaga king 6 months ago

Thank you..anorwara period

Tkt 6 months ago

Zvimwe zvacho maZIMBA tisangoti yes papa out of hate. Some of these statements uttered by the politicians are mearnt to cause mayhem & build confusion in the society, zvimwe ngatisa mhanye kungoti "taurai vabiti vachi humana"


Tkt 6 months ago

“Parallel Market Forex Rate Could Hit 400 By December”

17 Oct. 2021

“Parallel Market Forex Rate Could Hit 400 By December”
Former Finance Minister Tendai Biti says the foreign currency parallel market will spiral out of control as the year draws to an end.

Biti told The NewsHawks during an interview that the rate could hit 400 by December and the only way to avert an economic collapse is through full dollarisation of the economy.

Biti contended that full dollarisation will deal a heavy blow to rent-seeking behaviour by elements that take advantage of a crisis. Said Biti:

The only thing they need to fight is to dollarise, bring back the Zim dollar surrendering requirements, but they cannot do that because they are making money from the US dollar.

So politics of the stomach, politics of arbitrage will guarantee that we will continue having this distorted rigged auction rate because that is Zanu PF. They do not disturb their eating line.

The thing is right now, if we hit 400 by December then it is a no-go area. If you hit 400 it means that your month-on-month inflation will exceed 80% and that is hyperinflation.

So we are heading there slowly and surely. I would urge anyone sitting on RTGS to dispose of them as a matter of urgency.

Meanwhile, a former member of the Reserve Bank of Zimbabwe (RBZ) Monetary Policy (MPC), Eddie Cross said the government’s foreign currency auction system had been hampered by shortages in foreign currency, forcing companies to seek forex on the parallel market at a premium.

He said the demand for foreign currency had tripled in the past two years, making it difficult for the authorities to cope with the surge. Said Cross:

In the past six months, the auction conducted by the Reserve Bank has run into some difficulties as a consequence of inadequate funds driven by domestic demand.

Over the past two years, demand on the auction has risen from about US$15 million a week to the present demand of well over US$50 million a week.

The Reserve Bank has not been able to procure that amount. As a consequence, people have turned back to the informal sector for the balance of their requirements.

And this together with pressure from a growing economy has meant that the informal rate has risen dramatically to about 185 about two weeks ago.

The reality today is that the informal sector is now down to about 165, which is a decline of 20 cents in the dollar in the past two or three days and that is largely because of the steps the government has taken to try and control runaway devaluation of the dollar.

The Zimbabwe dollar continues losing ground against the US dollar, with the official exchange rate weakening from US$1:ZW$88.55 to US$1:ZW$90.07 last week.

On the parallel market, the rate ranges between US$1:ZW$175 and US$1:ZW$200.

nhasi DEC asvika saka uri kutii??


Four 6 months ago

Tkt parallel rate is btwn 1usd-220/230 rtgs as of this December 2021

Mutoriro 6 months ago

Makamboonepi nyika ine more than two payment methods kuti ecocash,debit card,Zdl,usd,barter trader,rand,pula


Gushungo 6 months ago

Rimwe zuva muchamuka Mbuya nehanda vatiza pa 50 bond, nekutsamwa.


Zimdollar 6 months ago

Hanzi "Ncube is the quintessential definition of failure." meaning "Purest & most perfect form of failure" I can not argue that, sezvo muchingozvionera mega kuti ndiri pa free fall zvangu.


RTM 6 months ago

Munozonyanya kungova negative vaBiti. Predict chinhu chimwe chete zvachowo chakanaka tione


Four 6 months ago

@RTM chakaipa hachizvari chakanaka. Unoda kutivzvigoni iwe. Cant u see kuti these guys neZ$ hapana chobuda.

Muvhangeri 6 months ago

Mukanyanya Prophet Biti,😁the rate of Zimbwa Dollar versus the greenback is usually galloping to $500.


Greedy 6 months ago

Define them for me please 🤔


Greedy 6 months ago

So we have 2types of Money Market
That's fine can allbody Define them for please 🤪😜



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