THE Reserve Bank of Zimbabwe (RBZ) maintains that the official exchange rate is the best indication of the value of the Zimbabwe dollar and contends that other economic indicators are influenced by speculation.
RBZ governor John Mangudya stated last week in his mid-term monetary policy statement that the apex bank will implement steps to close the gap between the auction and willing-buyer willing-seller exchange rates.
“It is the bank’s view that the willing-buyer willing-seller exchange rate is a good indicator of the foreign exchange rate in the economy. The parallel market exchange rates are to a larger extent influenced by speculative sentiments and forward pricing behaviour, especially by providers of goods and services to the government,” Mangudy
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