The widening gap between the official and parallel market exchange rates has created valuation and accounting difficulties, Fidelity Life Assurance (Fidelity) has said.
It comes as a scarcity of foreign currency on the Reserve Bank of Zimbabwe (RBZ) auction system has pushed demand for the greenback on the parallel market, widening the ZWL’s discount.
“The disparity between the official exchange rate and the parallel market rate is presenting a challenge when it comes to conversion of United States dollar denominated revenue to the Zimbabwe dollar as well as the determination of Zimbabwe dollar prices for properties,” Fidelity said last week in a trading update for the nine months ended September 30
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