Rand Disappearing from Circulation in Harare

Megabe may be a dictator but there’s one law he can’t change–Gresham’s:

The South African rand is disappearing from circulation especially in Harare, as it continues to gain value over the American dollar.
The rand however, remains the reference currency and is widely used in Midlands and Matabeleland.
Traders in the market now prefer to sell their good in rand as compared to the US dollar.
The parallel market is trading at a cross rate of US$1 at an equivalent of R9 with some trading as low as R8, 50 for a dollar.

Posted by on May 26th, 2009 at 10:48 pm


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