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New currency announced

by Mandla Ndlovu
20 Feb 2019 at 13:47hrs | Views
Zimbabwe has introduced a new currency called the RTGS Dollars, the Reserve Bank of Zimbabwe Chief John Panonetsa Mangudya said during the Monetary Policy Statement delivered on Wednesday.  

Mangudya announced that the RTGS dollars is now  currency, an addition to multi currency, will be the functional currency; used for pricing, settlement of local transactions and  budget is in this currency. He announced that a legal instrument which will action this currency  has been crafted.

When asked about the 'starting' exchange rate for the RTGS$ against the USD, Mangudya, who says the parallel market rate is between 3-4RTGS$ to the USD, said the RBZ will not set a rate but let the market set the exchange rate. It's value will be determined at a new interbank auction system.

The RTGS dollars shall be used by all entities, including government, and individuals in Zimbabwe for purposes of pricing of goods and services, record debts, accounting and settlement of domestic transactions

The use of RTGS dollars for domestic transactions will eliminate the existence of the multi-pricing system and charging of goods and services in foreign currency within the domestic economy, Mangudya said.

The Governor further revealed that Bureax de change shall be authorised to purchase forex without limits, but shall be limited to sell forex for small transactions such as subscriptions, business and personal travel up to a maximum aggregate daily limit of US$10 000 per bureau de change.

Source - Byo24News