Local banks have begun trading in forex following the decision by the Reserve Bank of Zimbabwe (RBZ) to float the United States dollar on Wednesday.
Announcing the Monetary Policy statement, RBZ governor Dr John Mangudya announced the introduction of an inter-bank foreign exchange market.
And this morning, the governor said the central bank had met with banks and agreed to start at a rate of 2,5, which is lower than the prevailing rate of 4 on the parallel illegal market.
“We came to a conclusion with the bankers last night at 2,5, and we hope thereafter that the rate will continue to find itself,” said the RBZ governor.
Prior to the floating of the US dollar, the RBZ had pegged RTGS balances at 1:1 to the US dollar, however shortages had resulted in high premiums for US dollars on the parallel market.
The inter-bank market will work via banks and bureaux de change on a willing-buyer, willing-seller basis.
According to the RBZ, the formalisation of foreign currency trading will entail denominating the existing RTGS balances, bond notes and coins in circulation as RTGS dollars to establish an exchange between current monetary balances and foreign currency.