Not a devaluation, but a depreciation…
What happened in September was not a devaluation, but a depreciation of the currency. A devaluation occurs when a country has got a fixed exchange rate and the authorities make a deliberate decision to devalue the currency. We don’t have a fixed exchange rate in Zimbabwe, we have what we call a Willing Seller Willing Buyer Rate. Now, that rate is supposed to be adjusting on a daily basis depending on what the sellers of foreign currency are wanting to sell at and what the buyers of foreign currency are wanting to buy at.
Dr. John Mushayavanhu, RBZ Governor | 28 February 2025
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