Zimbabwe moves to curb currency black market

The government in Zimbabwe has removed some restrictions on trading foreign currency in order to allow banks to take greater control in setting exchange rates. 

The move follows a mass depreciation in value of the Zimbabwean dollar, reintroduced last year, which has created a thriving black market for those seeking to buy the US dollar for imports. 

The official exchange rate is 18 Zimbabwean Dollars to 1 USD, but black market traders have been offering an average of Z$38 for $1. 

The Zimbabwean dollar was re-introduced last year as the result of a shortage of US dollars, one of the official foreign currencies used since 2009. 

The subsequent shortage of foreign currency has led to problems involving the import of fuel, electricity and food.

Photo: AFP