Money supply growth ‘batters’ ZWL

EXPERTS say rising money supply and high demand for the US dollar (US$), as well as a confidence deficit in Zimbabwe, have piled pressure on the domestic unit resulting in the current spikes in both official black market exchange rates.
The Zimbabwe dollar’s slide has intensified in 2023, losing about 23 percent against the greenback on the official market and up to 50 percent on the parallel market.
Economist, Eddie Cross, said money supply was the major factor in recent exchange rate volatility.
“The apex bank is printing money to buy foreign exchange and gold,” told The Financial Gazette this week.
“Any increase in local currency — electronic or paper currency will result in the devaluation of the local currency. Speculators benefit, and they also contribute to the problem,” he added.