Zimbabwe’s New Currency System Adequately Funded: Central Bank

Source: Africa FX News: Latest on Zimbabwe’s New Currency – Bloomberg

 

Mangudya said local lenders have almost $1 billion in their Foreign Currency Accounts (FCA).

“It’s about sufficient resources utilization of resources,” Mangudya was quoted as saying in the Harare-based newspaper.

“The first thing is that we do not expect the exchange rate to continue to go up because there is now a formal market of foreign exchange,” he said.

The Southern African country reintroduced the foreign currency system for the first time in 16 years on June 23 in a bid to halt the local currency rout that was reintroduced a year ago.

“Just to put things into perspective, the interbank system which we tried earlier in the year failed because the banks could not trade among themselves due to counter party limits, as well as issue of de-risking,” he said.

“The exchange rate will be driven by effective demand from corporates,” he said. He added that he expects “the exchange rate to stabilize at a level which allows users of of foreign exchange to price their goods and services appropriately, while at the same time providing good value for money for exporters.”

On a monthly basis, Zimbabwe exports $350 million to $400 million, and receives $50 million to $60 million as remittances from abroad.

— With assistance by Godfrey Marawanyika

 

COMMENTS

WORDPRESS: 1
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    Ndebele 4 months ago

    It will be 1 000 000% supported by the Zanu Printing Press. And he inflation will match the printing press.