Rand free-fall threatens Zimbabwe economy

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BUSINESS leaders and economic experts say Zimbabwe’s economic woes could worsen as the South African rand weakens, reducing local industry’s competitiveness and draining foreign exchange from the economy, while widening the country’s trade deficit with its neighbour and major trading partner.
The rand last week tumbled to a record low against the dollar — past R19 — amid geopolitical risks and investor concerns over a domestic energy crisis and global monetary tightening.
Meanwhile, analysts expect the currency to further fall on the back of a developing scandal around South Africa (SA)’s support for Russia in its conflict with Ukraine.