The recent liberalisation of the foreign currency exchange rules by the Reserve Bank of Zimbabwe (RBZ) governor, Gideon Gono has resulted in a race of the interbank and the parallel market rates, The Zimbabwe Gazette can reveal.

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In his first Quarter Monetary Policy Statement, the Central bank chief said he is focussing on food, foreign exchange generation, producer viability and increased supply of basic commodities.

“Consistent with the need to ensure availability of foreign exchange to priority sectors, at the same time guaranteeing exporter viability, the RBZ has, with immediate effect, introduced a willing-buyer; willing-seller priority focused twinning arrangement in the foreign exchange market.”

For a couple of years, owing to the hard currency shortage, many Zimbabwean people and businesses resorted to sourcing the foreign currency from the illegal- parallel market where rates were much more higher than the interbank rates.

On Monday this week, the interbank rate was at $158 000 000.00 to US$1 as compared to $130 000 000.00 to US$1 at the parallel market.

By Wednesday, the interbank rate stood at $194 000 000.00 to US$1 against the black market's $165 000 000.00 to US$1.

Gono said what this means is that on a fortnightly basis, authorized dealers (banks and MTAs) will submit to the RBZ details of the willing buyer-willing seller transactions they would have handled over the preceding 2 weeks for certification of compliance with the priority specifications.”

“This move was necessitated in order to significantly move the economy towards stability, increased capacity utilization, availability of basic commodities and, hence reduced and declining inflationary pressures, it has become necessary that the pricing and allocative frameworks in the foreign exchange market be reformed in a manner that guarantees viability for all generators of foreign exchange, whilst at the same time, ensuring availability and affordability of this resource to users of foreign currency, particularly the non-exporting producers of basic goods and services,” he emphasised.

Gono added, in seeking to accomplish these multiple objectives, this Monetary Policy Statement introduces the critical policy reforms, which must be complemented and built upon through collective responsibility and unparalleled economic patriotism across the board.”

“Effective redress of the current setbacks impels that a comprehensive package of measures be implemented in a manner that underpins and shapes overall economic productivity.” he said.

With over 80 percent of Zimbabwe’s imports constituting critical inputs, machinery, spare parts, electricity, fuel and chemicals among many other essentials, smooth functionality of the foreign exchange market is a pre-requisite for enduring macroeconomic stability.

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