Yesterday the Reserve Bank of Zimbabwe’s Financial Intelligence Unit froze more bank accounts which they suspect belong to individuals fueling the illegal foreign currency trade.
According to reports the frozen accounts belong to
- Bill Height Investments,
- Landela Investments,
- Rimosa Trading,
- Fossil Agro
- Traverse Travel.
Less dramatic results this time
When the government did the same lat Friday the results were quite dramatic. The black market exchange rate which had climbed to $25 ZWL per each USD crashed down to lows of $13 ZWL: USD.
While some argued that this proved their theory that the black market was being driven by a few unscrupulous individuals, we disagreed. We instead proposed our watering hole theory. Buyers were simply scared to venture back onto the market.
On Monday trade opened at $14 ZWL but given prices in shops which never came down, the rate quickly climbed to $16 by end of the same day. By yesterday the Zimbabwean dollar was trading at around $19.50.
Upon the announcement that some accounts had been frozen the rate dipped a bit to $18 where we suspect it will remain for a few days before it begins its climb again.
According to Bluemari the following are today’s indicative rates:
Given prices in shops we think they are wrong. Their rates appear to be too low.