Zimdollar’s six-month dance:  Symphony of stability, economic promise Prices have stabilised in Zimbabwe, leading to increased availability of basic commodities. - File Picture.

Marilyn Mutize-Herald Correspondent 

In the heart of Southern Africa, where economic tides often seem as unpredictable as the savannah winds, Zimbabwe has been quietly orchestrating a financial feat. 

For six months now, the Zimbabwean dollar has been dancing to the rhythm of relative stability, a phenomenon that has not graced the nation for quite some time. 

As the curtain falls on this economic act, it is time to applaud the players – Government, the financial institutions, and the citizens for their role in this delicate ballet.

From July 27 to the November 14 this year, the Zimbabwean dollar took centre stage, undergoing a 27,89 percent depreciation on the Reserve Bank of Zimbabwe (RBZ) auction system. 

Simultaneously, the parallel market witnessed a slightly more dramatic dip, with a 31,12 percent depreciation during the same period.

The latest results from the wholesale foreign currency auction held on November 14, 2023, revealed that the local currency’s official rate reached $755,71 against US$1 – a mere 0,30 percent depreciation from the previous week’s official rate of $5 738,72 

In the parallel market, the upper cap rate of US$1: $8 000 was noted as overall compared to the previous week, translating to a 3,9 percent depreciation. 

Now, as the audience collectively holds its breath, economic analysts step into the limelight, showering praises on the Government for orchestrating this stability. 

The Zimbabwean dollar’s consistent performance, according to RBZ’s weighted average rate, has drawn applause from experts who recognise the critical role it plays in the nation’s economic symphony.

Picture this stability as a well-composed symphony. Each note, a day in the six-month journey, contributes to the overall melody of economic resilience.

Government’s commitment to keeping the Zimbabwean dollar’s tempo in check has resonated positively with economic analysts who view this stability as a powerful overture for potential growth. 

One analyst, revelling in the economic harmony, notes, “The relative stability of the Zimbabwean dollar is a positive signal for economic growth. It fosters confidence among investors and encourages long-term commitments in the country.”

In a surprising encore, the stability of the Zimbabwean dollar has resulted in an extension of the multi-currency regime until December 31, 2030. 

This decision, a testament to the positive economic crescendo, has beckoned long-term investments to the nation. 

Financial institutions, in response, have taken a bold step – offering foreign currency (USD) loans with tenures extending beyond December 31, 2025, up to December 31, 2030. 

The stage is set for economic transformations, and Zimbabwe is reclaiming its spotlight on the global financial stage.

Let us listen to another movement in this symphony the impact on the cost of living. 

Against the backdrop of a stable Zimbabwean dollar, the citizens have witnessed a significant fall in prices, a melody that resonates with their day-to-day struggles. 

Prices have gracefully fallen by 30 percent in the past month, bringing a refreshing tune to the economic atmosphere. It is a melody of relief, a sigh of gratitude from a populace long burdened by the weight of inflation.

Finance, Economic Development, and Investment Promotion, Deputy Minister David Mnangagwa, is optimistic about this.

“Because of the stability of the Zimbabwe dollar, there has been a major fall in the cost of living. Prices have fallen by 30 percent in the last month, bringing tangible relief to the citizens,” he said. 

The impact on the common man is perhaps the most heartening note in this economic symphony, proving that when the conductor’s baton moves with precision, even the smallest notes create a harmonious composition.

As we bask in the euphony of Zimbabwe’s economic stability, it is essential to recognise the multiple advantages this harmony brings. 

The business sector, long accustomed to navigating the erratic waves of the market, now finds itself in calmer waters. 

A stable currency provides a predictable economic environment, empowering businesses to plan and invest with confidence.

The symphony of economic stability, therefore, becomes an anthem for improved economic planning, a melody of progress.

Moreover, the citizens find themselves with a new found purchasing power, a benefit that transcends the numbers on the currency exchange charts.

When the Zimbabwean dollar dances to a stable tune, the citizens become protagonists in their economic narratives. 

The ability to make informed financial decisions, to dream beyond the next pay check, is a melody that resonates deeply with the aspirations of a nation.

In this grand performance, the stability of the Zimbabwean dollar has cast a spotlight on the broader advantages it brings to the country’s economic landscape. 

Analysts and Government officials alike are celebrating the new found stability, recognising its role in fostering investor confidence, attracting long-term investments, and improving the overall well-being of the citizens. 

It is not just about a number on a chart; it is about the transformative power of a stable currency.

As the Zimbabwean economic symphony continues, there is a palpable sense of hope in the air. 

The stability of the Zimbabwean dollar is not merely a fleeting moment; it is a commitment to sustained growth. 

As we applaud the Government, financial institutions, and citizens for their roles in this economic ballet, let us also acknowledge that the stage is set for a promising encore. 

The Zimbabwean dollar’s six-month dance has not only captivated the audience, but has also laid the groundwork for a flourishing economic symphony.

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