Zim dollar to tumble post Covid-19

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THE Zimbabwe dollar will continue to lose value against major currencies in the aftermath of the Covid-19 pandemic as government embarks on quasi-fiscal programmes to try cushion vulnerable citizens, a leading stock broking firm has said.
In an analysis of the country’s investment climate, Imara Asset Management said increased government spending together with falling exports and low production would add to the rapid depreciation of the local currency.

“From an investment perspective, our strategy in this very uncertain environment has not changed. In this regard, our underlying assumption is that the Zim dollar will continue to lose value as government, through the RBZ, undertakes further quasi-fiscal expenditures financed by boosting reserve money,” John Legat, Imara Asset Management chief executive said.