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Zimbabwe Monetary policy highlights - RTGs now a currency

by Staff reporter
20 Feb 2019 at 13:40hrs | Views
THE governor of the Reserve Bank of Zimbabwe (RBZ) Dr John Mangudya released the long-awaited Monetary Policy Statement (MPS) and below are the highights.

-Interbank FX market.- Being established effective Friday on a willing buyer, willing seller basis.

- RTGS dollars is a currency; an addition to multi-currency; will be the functional currency; used for pricing, settlement of local transactions; budget is in this currency; legal instrument has been crafted, reference currency changed from USD to RTGS

- Lines of credit arranged to stabilize the currency

- RBZ will provide seed FX so that every bank can trade Friday morning

- RBZ will sell this FX to banks at a rate of allowable margin 2.5%

- Fuel, cooking oil, electricity etc will get separate allocations - will not be part of interbank applications

- 3.5 million individual accounts have $205 million only. People have no money! Bulk of RTGS is held by about 1,900 firms

- Managed float concept

Source - online