31 3006.
As of yesterday the local currency is currently trading at above $240 000 to the US dollar, while the British pound and South African rand were trading above $500 000 and 35 000 respectively.
“In line with section 47 of the Reserve Bank of Zimbabwe Act, the minister of Finance will determine the country’s exchange rate policy, which the central bank implements,” Mumbengegwi said.
“The Reserve Bank of Zimbabwe will therefore adjust the exchange rate applicable to all purchase and sale of foreign exchange in the market from $250 per US dollar to $30 000 with immediate,” Mumbengegwi said.
Mumbengegwi said the new rate will apply to all Zimbabwe Revenue Authority customs and incomes tax valuations.
Mumbengegwi’s devaluation came six months after Reserve Bank governor Gideon Gono said he would not devalue the shaky Zimbabwean dollar, in his last monetary policy, confounding expectations from many struggling businesses in Zimbabwe.
“No devaluation from this governor,” said Gono.
Gono defended his decision not the devalue the dollar saying it was not his responsibility to inflict the pain on defenseless consumers that rising prices would bring.
“No amount of devaluation will lead to planeloads, truckloads of foreign exchange flowing into Zimbabwe in a sustainable way,” he said.
Gono has already authorised more than eight devaluations since he took the reins at the central bank in December 2003 before the Ministry of Finance was tasked with the responsibility of authorising devaluation..