World Economy

Weak Rand Hurting Zimbabwe Economy

Weak Rand Hurting Zimbabwe EconomyWeak Rand Hurting Zimbabwe Economy

The Zimbabwean government might have resisted several calls to adopt the rand as its primary currency, but figures from the latest mid-term monetary policy statement show the South African rand continues to cause havoc in the country’s economy, Africa TVC News reported. Pitted against a strengthening US dollar, the currency used to make up more than 90% of transactions in Zimbabwe, the often weakening South African unit has made life difficult for most businesses and individuals in Zimbabwe.

South Africa is Zimbabwe’s major trading partner, and any changes in its currency in relation to the USD is quickly felt in Zimbabwe. One of the areas where Zimbabwe has felt the pain of a weakening rand is in remittances. According to the policy statement presented by Reserve Bank of Zimbabwe Governor Dr. John Mangudya, the continued appreciation of the dollar against regional currencies has also affected the dollar-denominated value of remittance inflows.