malvernmugadzikwa
Business Writer
Local banks have started showing indicative rates for the willing-buyer willing- seller foreign currency
trading system announced by the Reserve Bank of Zimbabwe early this week.
Following a meeting of its Monetary Policy Committee on the 1st of April, the central bank issued a statement on Monday allowing banks to conduct foreign exchange transactions of up US$1 000
on a willing-buyer willing- seller basis.
The central bank described the move as further “liberalizing the foreign exchange market”.
The apex bank said the facility will be conducted under an arrangement agreed upon between banks and the Apex Bank and in terms of which individuals with free funds and entities/corporates hold
foreign exchange in their foreign currency accounts.
Some banks have since started indicating their buying and selling rates.
Steward Bank has its buying rate for US$1 at $216,6201, mid-rate at $218,8082, while
the selling rate was quoted at $224,2784. CBZ Bank has a similar buying rate and
mid-rate as Steward Bank but was an aggressive seller at $240,6890.
The quoted rates by the two banks are at a significant premium to the official exchange rate of 145.8721and also at a significant discount rate to parallel market rates above $300 to the US
dollar.
While neither of the banks had confirmed if it had recorded any trades, the move by the central bank has been met with mixed reactions.
Some market watcher sees this as a step toward introducing an interbank market controlled by banks.
The decision, market watchers say, will lead to the country having a reference
rate that is market-driven via formal channels. Small to Medium Enterprises Association
of Zimbabwe (SMEAZ).
Chief executive officer, Farai Mutambanengwe said if the RBZ implements the letter
and spirit of that MPC statement “we will see an immediate stabilisation of market rate, possible appreciation of ZWL by mid-year and negative inflation by last quarter
Bongani Ndlovu