RBZ set to rollout new forex trading system
LIVINGSTONE MARUFU
The Reserve Bank of Zimbabwe (RBZ) is set to roll out a state-of-the-art electronic foreign exchange (forex) trading system aimed at fully automating price discovery and removing manual interventions from the currency market,Business Times can report.
The initiative comes amid lingering concerns that the RBZ has, at times, influenced the “willing buyer, willing seller” mechanism, fueling suspicions of potential rate manipulation. The new platform is expected to enhance transparency, streamline trading, and strengthen market confidence.
The International Monetary Fund (IMF) has previously urged the central bank to reform its forex operations to reinforce credibility and ensure a more transparent and efficient foreign exchange market.
RBZ Governor Dr John Mushayavanhu confirmed the development, outlining a vision for a modernised trading system where exchange rates are determined electronically, moving away from the current manual data collection from commercial banks.
“So, as a central bank, we are developing a foreign exchange trading system, which is going to be algorithm-based,” Dr Mushayavanhu said.
“You enter the system anonymously. They sell, we buy, orders are matched electronically. Only after the trades are matched will participants know their counterparties, and then settlement occurs,” he added.
The anonymous order-matching mechanism is designed to prevent collusion and ensure that trades reflect genuine supply and demand, rather than administrative fiat or bilateral negotiations.
Dr Mushayavanhu said the system is at an advanced stage, with commercial bankers actively involved in user acceptance testing.
“Some of the bankers here have participated in testing and provided very useful feedback, which we are incorporating into the system,” he noted.
Currently, the RBZ calculates the official exchange rate using a weighted average of transaction data voluntarily submitted by banks. Mushayavanhu argued that an automated platform would deliver more accurate, market-reflective pricing.
“We want to remove the manual elements so that price determination and discovery are done electronically,” he said.
The central bank indicated that the new platform will represent a major technological upgrade to Zimbabwe’s forex infrastructure. Once completed, the system will undergo independent validation by a reputable international organisation before being officially launched—a move aimed at bolstering confidence in its integrity.
“Once we have perfected the system, it will be validated externally. We are not just going to say it works; we want credible verification,” Dr Mushayavanhu said.
Economist Malone Gwadu welcomed the initiative, describing it as a key step toward enhancing policy credibility and macroeconomic stability.
“This is a welcome development. By automating price discovery, the RBZ aims to eliminate perceptions of administrative interference in the exchange rate while ensuring the official rate accurately reflects market conditions,” Gwadu said.
The rollout of the algorithm-based platform signals a decisive shift toward fully electronic forex trading in Zimbabwe, potentially ending decades of manual rate-setting practices.
