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RBZ maintains bond note - US$ exchange rate at par
01 Oct 2018 at 21:49hrs | Views
THE Reserve Bank of Zimbabwe has maintained the exchange rate of the bond notes at par with the US dollar.
In his delayed mid-term Monetary Policy Statement, governor John Mangudya said that the central bank would not devalue the currency, at least not in the short term, as any move towards that would be suicidal.
Mangudya directed banks to effectively operationalise the ring-fencing policy on Nostro foreign currency accounts by separating FCAs into two categories, namely Nostro FCAs and RTGS FCAs. Banks have been given up to 15 October 2018 to fully comply with this policy measure.
"The purposes of separating the FCAs is to ensure we create value for money with those that are exporting. ...To ensure that the amounts (exporting and non-exporting) do not mingle. Mingling is de-motivating to those who are bringing foreign currency. It's suicidal to devalue because overnight people will offload their balances and create a crisis in the financial sector. It has spillover effects to the ordinary person, particularly on price increases."
In his delayed mid-term Monetary Policy Statement, governor John Mangudya said that the central bank would not devalue the currency, at least not in the short term, as any move towards that would be suicidal.
"The purposes of separating the FCAs is to ensure we create value for money with those that are exporting. ...To ensure that the amounts (exporting and non-exporting) do not mingle. Mingling is de-motivating to those who are bringing foreign currency. It's suicidal to devalue because overnight people will offload their balances and create a crisis in the financial sector. It has spillover effects to the ordinary person, particularly on price increases."
Source - Byo24News
