Zimbabwe Launches New Inter-bank Forex Market to Battle the Fixed Exchange Rate

21st February 2019 BY checkoutafrica

In an effort to battle the fixed exchange rate between the US Dollar and the country’s bond note currency, Zimbabwe’s Central Bank Governor, John Mangudya announced that Zimbabwe is in the process of implementing a new inter-bank foreign exchange market.

Zimbabwe financial state has been in disarray for quite some time now, with decisions such as abanding the Zimbabwean dollar in favour of the US dollar back in 2009 serving as a catalyst to the countries financial problem. With recent rises in fuel prices which led to violent protests and reports of police brutality, Mangudya is hoping to restore stability to the ever increasing prices in Zimbabwe, explaining that “The bank is in the process of establishing an immediate interbank foreign exchange market in Zimbabwe to formalize RBTR balances (real-time gross settlement) and bond notes with US dollars and other currencies on the basis of over-the-counter transactions through banks and exchange offices. To this end, prices in Zimbabwe should remain at their current level or start to decline in line with exchange rate stability as current currency balances have not changed.”

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