Currency Exchange Rate Zimbabwe Dollar To Us Dollar
As of September 2021, the exchange rate for the Zimbabwe dollar to US dollar is approximately 84.64 ZWL to 1 USD. This rate has been fluctuating over the years due to various economic and political factors affecting Zimbabwe.
History of Zimbabwe Dollar
The Zimbabwe dollar was introduced in 1980 when the country gained independence from the United Kingdom. Initially, it was pegged to the British pound at a rate of 1:1, but later on, it was pegged to the US dollar at a rate of 1 ZWD to 1.47 USD.
Over the years, the Zimbabwean economy faced various challenges such as hyperinflation, corruption, and political instability, which led to the devaluation of the Zimbabwe dollar. In 2009, the government abandoned the Zimbabwe dollar and adopted a multi-currency system, where the US dollar became the dominant currency in the country.
Factors Affecting Exchange Rate
Several factors affect the exchange rate between the Zimbabwe dollar and the US dollar. One of the primary factors is the supply and demand of the currencies. When there is high demand for the US dollar, the Zimbabwe dollar depreciates, and when there is high demand for the Zimbabwe dollar, it appreciates.
Another factor is the political and economic stability of the country. When there is political instability and economic uncertainty, investors tend to shy away from the country, leading to a decrease in demand for the Zimbabwe dollar and depreciation of the currency.
Impact of Exchange Rate on Zimbabweans
The exchange rate has a significant impact on the lives of Zimbabweans, especially those who rely on imports or remittances from abroad. When the Zimbabwe dollar depreciates, the cost of imports and remittances increases, making it harder for people to afford basic necessities.
On the other hand, when the Zimbabwe dollar appreciates, it becomes cheaper to import goods and receive remittances, which improves the standard of living for Zimbabweans.
Conclusion
The exchange rate between the Zimbabwe dollar and the US dollar is an essential indicator of the economic and political situation in Zimbabwe. While the current exchange rate is relatively stable, it is subject to change due to various factors. Zimbabwe's government needs to address the underlying issues affecting the country's economy to ensure long-term stability and growth.