Phillimon Mhlanga
Local banks have started selling foreign currency to companies and individuals at an official rate of 2,5 against the United States dollar following the liberalisation of the country’s foreign currency market.
Reserve Bank of Zimbabwe (RBZ) governor John Mangudya told delegates at a monetary policy statement review meeting held in the capital on Friday, the move to adopt a floating exchange rate would stabilise the exchange rates and prices of goods.
He said the central bank was also using the floating exchange rate to supply cheap forex to banks.
“This is not a trial-run. This is the beginning of the journey. Last night, we agreed with the banks and they were buying from us (RBZ) at 2,5: 1 which include their mark-up. Today (Friday) banks are selling using the 2,5:1 rate, which is in line with regional best practice,”
he said.
“They (banks) should not make money out of our money. Banks, therefore, should not charge any rate above that. This is not acceptable.”
Mangudya said the removal of the an official exchange rate kills the multi-tier pricing adding that it was likely that goods would become cheaper.
The formalisation of the trading of real time gross settlement (RTGS) and bond notes, now referred to as RTGS dollars, with hard currency such as the United States dollars is on a willing buyer, willing seller basis through banks and bureaux de change.
Mangudya, however, highlighted that the central bank would put in place safeguards to maintain order and sanity in the market.
