The Value Of Foreign Exchange In Zimbabwe:Concepts And Estimates

Abstract

This paper discusses the value of foreign exchange in Zimbabwe, a central element in government' s project appraisal and other planning efforts, and a major determinant of the level and distribution of income and incentives throughout the economy. To quantity changes over time in this value, the paper uses the real exchange rate (RER) approach, comparing changes in the prices of tradable and non-tradable goods over time.