Zimbabwe to launch new Inter-bank forex market

Zimbabwe’s Central Bank Governor, John Mangudya said it is in the process of establishing a new inter-bank foreign exchange market.

On Wednesday, the Central bank governor said the new forex market will help remove the fixed exchange rate between the US dollar and its quasi currency.

“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,” he told the press in Harare.

He said this should also help restore price stability in the Southern African nation.

“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’‘, Mangudya added.

In 2009, Zimbabwe abandoned its Zimbabwean dollar in favor of the US dollar which is totally devalued over hyperinflation.

In December, a rise in fuel prices announced by President Emmerson Mnangagwa led to violent riots and police brutality on protesters.

AFP