Businesses in Zimbabwe have begun to reference their prices to the parallel market exchange rate, however the main sources of forex for importing commodities are foreign currency accounts (FCA), interbank, and auction systems.

The RBZ auction rate was trading at ZWL 928.5887 at the beginning of the second quarter, however, four weeks into the second quarter the RBZ auction rate is sitting at ZWL 1021 versus the USD currency. Over the period of a month, the RBZ auction rate has declined by 9.95%.

The parallel market exchange rate this week surpassed the ZWL 2000 mark against the USD currency. This shows that the parallel market rate has declined by 25% since the beginning of the second quarter. Currently, the parallel-market is paying US$1: ZWL1700 as the standard higher price but individuals obtaining dollars from the parallel market are also paying US$1: ZWL 2000-2200.

This trend has left a segment of the general population without access to the USD due to the affliction of price increases, which are unfortunately arising at an increasingly rapid clip as traders safeguard themselves against speculative exchange rate spikes. Due to the USD shortages in the market, some businesses have started to charge prices in USD meaning prices in ZWL have soared.

Below is how the USD is being traded at the parallel market as of 28 April 2023: