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*'RTGS Dollar Faces Uncertain Future'*

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A regional economic think-tank, NKC African Economics (NKC), has warned that Zimbabwe’s currency risk score remained high due to low production, company closures and rising inflation.

The country introduced a new currency a few weeks ago, the RTGS Dollar which was pegged at 2.5 to the Greenback when it started to trade at the interbank market.

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In its currency risk note, NKC said:

> Zimbabwe and Sudan’s currency risk scores are at the very high end of the spectrum, with both countries experiencing rampant inflation and extremely low forex reserve buffers.

> We also have concerns about the extent of government borrowing from the central bank and the impact that will have on inflation.

> Most recently, the RTGS dollars was trading at 3,8/$ on the black market. On February 20, the central bank officially acknowledged that the currency is no longer on par with the dollar, saying that the rate would be market-determined.

> However, it has subsequently been pegged at 2.5/$. Given the lack of trust in the new currency, the outlook remains highly uncertain.

The RTGS has been gradually losing ground against the US dollar.

*Related:*

*Mthuli Urges Zimbabweans To Fully Embrace RTGS Dollars*

*RTGS Dollar Weakens On Interbank Market*

*RTGS Dollar To Weaken Ahead Of Tobacco Auction – RBZ*

*Bond Note NO LONGER 1:1 To US Dollar, Now Part Of The RTGS Dollars Family*

*More: Financial Gazette (Subscription Required)*

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