STORY: Zimbabwean currency gains ground against U.S. dollar as forex rate volatility eases
DATELINE: July 29, 2023
LENGTH: 00:03:39
LOCATION: Harare
CATEGORY: ECONOMY
 
SHOTLIST:
1. STANDUP 1 (English): TAFARA MUGWARA, Xinhua reporter
2. various of people counting currency
3. SOUNDBITE 1 (English): ZVIKOMBORERO SIBANDA, Economic Analyst
4. various of vendors and people on the streets
5. STANDUP 2 (English): TAFARA MUGWARA, Xinhua reporter
6. SOUNDBITE 2 (English): LUCY KUWENGWA, Local resident
7. SOUNDBITE 3 (Shona): SAMUEL PFANI, Street vendor
 
STORYLINE:
 
The Zimbabwean dollar continued to gain ground following government measures aimed at stabilizing foreign exchange rate and curbing a freefall that had resulted in soaring prices.
 
The currency traded at 4,517 Zimbabwean dollars per U.S. dollar on wholesale foreign exchange auction Thursday, up from 6,713 per U.S. dollar recorded on June 16, central bank figures showed.
 
STANDUP 1 (English): TAFARA MUGWARA, Xinhua reporter
"The Zimbabwean dollar continues to stabilize following a freefall that resulted in the soaring of prices beyond the reach of many people. According to the statistics agency, ZIMSTAT, inflation dropped to 15.3 percent in the month of July from 74.5 percent in June, the firming of the currency comes after the government adopted a raft of measures aimed at mopping up excess liquidity in the economy."
 
After experiencing exchange rate volatility between April and June, the Zimbabwean government implemented policy measures to stabilize the rate, including a directive for import duties to be paid in Zimbabwean dollars, except for luxury items.
 
At the same time, a directive for government institutions to collect charges in the local currency and a requirement that 50 percent of the foreign currency portion of corporate tax payments must be in the local currency were also made.
 
SOUNDBITE 1 (English): ZVIKOMBORERO SIBANDA, Economic analyst
"We are witnessing the effects of these measures which were put forward by authorities, and these measures have actually managed to mop excess liquidity which was existing in the economy. Considering where we are coming from, what's happening right now is actually good, especially to formal enterprises because once the ZimDollar is stable, it actually brings predictability to businesses where you can plan for your future, knowing that the rate is not going to actually tumble in the next two-three days or two-three weeks."
 
STANDUP 2 (English): TAFARA MUGWARA, Xinhua reporter
"Inflation meant that people had to get rid of the local dollar as soon as they got hold of it before it was rendered worthless. But for now Zimbabweans can hold on to their hard-earned cash for much longer, provided that the current stability persists."
 
SOUNDBITE 2 (English): LUCY KUWENGWA, Local resident
"With this improvement in the stability of our local currency, it has also lessened the pressure for one to change their money in order to preserve the value of their local currency."
 
SOUNDBITE 3 (Shona): SAMUEL PFANI, Street vendor
"We can now confidently use our local currency. We had to exchange it for U.S. dollars but now we can make payments directly because rates have stabilized."
 
The Zimbabwean dollar has a turbulent history. It was abandoned in 2009 when inflation reached historical levels and a multicurrency regime was adopted. The government in June 2019 removed the multicurrency regime and re-introduced the Zimbabwe dollar as the sole legal tender.
 
In March 2020, however, the government allowed people with free funds to use their foreign currency to pay for goods and services for easier transactions following the outbreak of COVID-19.
 
The use of the U.S. dollar has since grown in the economy, with more than 70 percent of expenditures denominated in U.S. dollars.
 
Xinhua News Agency correspondents reporting from Harare.
(XHTV)