Source: JUST IN: RBZ floats US dollar exchange rate | The Herald 20 FEB, 2019
Martin Kadzere and Golden Sibanda
THE Reserve Bank of Zimbabwe (RBZ) has liberalised the US dollar exchange rate against real time gross settlement balances (RTGS), bond notes and all currencies in the multi-currency basket, as it seeks to formalise trade in foreign currency.Delivering the eagerly awaited 2019 Monetary Policy Statement (MPS) this afternoon, RBZ Governor Dr John Mangudya said the move would bring sanity in the foreign currency market, promote exports, boost Diaspora remittances and investments, eliminate multi-tier pricing a as well as preserve value of local forms of money.
Click here for the full statement
The RBZ introduced bond notes in 2016, as an export incentive and pegged the surrogate currency as well as electronic dollars at one to one with the US dollar, but shortage of forex in Zimbabwe resulted in the market disregarding the parity policy and ascribing high premiums on the greenback.
As such, the central bank will with immediate effect establish an interbank foreign exchange market to formalize trade in foreign currency through banks and bureaux de change on a willing buyer willing seller basis.
More to Follow…
COMMENTS
Doctor John Bond Mangudya PhD ( Univ of Carribbean) has finally bowed to Greshams law where bad money drives out good money. Since the introduction of his bond notes the USD has done a disappearing act big time.
So today he has agreed that the bond note can cghnage hands at the market price.
Presently OMIR ( Old Mutual implied rate) says it should be about 5.7 mabondi to 1 USD – on the streets it is about 4 mabondi to 1 USD.
RBOZ has finally, after 3 gruelling years, agreed to the inevitable – amazing that these people in the RBOZ are so basically silly about markets & refuse to acknowledge that they exist – 3 years wasted comrades & dozens of people sent to jail for no reason
Zimbabweans with money inside ZW banks thought they had USD’s – now they have RTGS dollars or mabondi notes – as mabondi (RTGS) 4 is equal to 1 USD they have taken a haircut – so put one into the bank & get back about 25 cents – ZANUPF economics at work comrades.
Greshams law once again after 400 years has been proved correct
Pambeeri ne ZANUPF to impoverish us all quick time