Forex on the streets is in demand again
Now that cash is in the system again, buying forex on the streets is in demand again.
On 4 August the street rate for buying South African Rands rocketed to 25billion ($2.50). Previously the street rate remained significantly lower than the RTGS rate because nobody had available cash to buy. But the gap between the two rates is closing.
The Zimbabwe dollar cash situation will dry up again fairly soon and with that it is expected that the RTGS rate will go up again. Some unscrupulous business people are cashing in on the market: they are buying at street rate and then selling at RTGS rate, or they are buying fuel at street rate for cash and selling the fuel at RTGS rate.
The effect of all this is the fuelling of free-fall inflation.
