Zimbabwe Acts to Support Currency Under ‘Enormous Pressure’
- Government scraps import licenses and duties on basic goods
- Central bank set to raise interest rates on short-term loans
Mthuli Ncube
Photographer: Cynthia R Matonhodze/BloombergThis article is for subscribers only.
Zimbabwe is making yet another attempt to stabilize its currency that’s under “enormous pressure,” with inflation driving demand for US dollars, according to the country’s finance chief.
The government announced Thursday that businesses will from May 15 be allowed to keep all foreign exchange earned from local sales. Previously, the central bank required that 15% of US dollar sales be converted to local currency using the official rate. The central bank will also raise interest rates that are already the world’s highest.