Posted October 12, 2018 12:05:15The UK currency exchangers are often in the spotlight for their role in fuelling speculation that a currency swap deal between the UK and Zimbabwe could take place.

Zimbabwe’s currency is worth more than the UK’s, and Zimbabwe is one of the most heavily devalued economies in the world, but the exchange rate of the UK pound against the Zimbabwean rand is relatively stable at $1.20 to the dollar.

The exchange rate for the Zimbabwe dollar against the US dollar has also fluctuated, but its level has not been the same since the UK entered into the US-backed sanctions regime in December 2016. 

However, on Wednesday, the exchange rates were at their lowest since the early 2000s, when Zimbabwe was ruled by President Robert Mugabe and his government for decades.

The UK has been seeking to get rid of the government of Robert Mugabas son and deputy president Emmerson Mnangagwa, who was convicted of corruption and sentenced to 20 years in jail in May. 

The exchange rate had fallen to $1,120.01 per US dollar at the time of the announcement, from $1 and a dollar in 2015, according to the exchange service.

The rate had previously been at $2.30, and it was at $4.00 in 2016.

Zimbabwe has a huge currency reserves of around $7 billion.

The value of the Zimbabwe dollars is heavily affected by the price of oil, which has fallen sharply over the past two years.

The central bank, the Zimbabwe National Petroleum Corporation (ZNPC), reported in September that its foreign exchange reserves fell by $8.7 billion, or 20 percent, to $4,093 billion. 

It is believed the decline was due to higher oil prices, which made oil more expensive for Zimbabwean households. 

Zimbabwe has also been the victim of economic turmoil in neighbouring Zambia, with a massive drought last year forcing some businesses to close.

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