Sunday , August 7 2022

The black market forex rate remains stable


The PARALLEL market rates remained stable yesterday following a decision by the Government of Zimbabwe, Dr John Mangudya, to liberalize the US dollar exchange rate against the Gross Time Settlement balances.

An analysis of the economic economy was described as a sign of confidence in the Financial Policy Bills issued by the central bank.

A survey by our Harare Bureau yesterday shows that the US black market rate is stable as it contains about 1: 3.5 bond notes which is the existing figure before issuing the Financial Policy Statement on Wednesday.

However, the black market held a two-tier US dollar rate to the bond note with eco-cash transfers at 1: 3.8.

In an interview yesterday, Dr. Godfrey Kanyenze, director of Labor Research and Economic Development said that the black market rate should fall steadily because of what the central bank did what industry was calling for.

"Free exchange release is what the market has ever been pressing. The parallel market rate should fall but only if the Government succeeds in securing enough lines credit to support the RTGS dollar. You will realize that there is a lot of demand for the US dollar to hold different activities, "said Dr Kanyenze.

"We must note that the collapse of the parallel market is achievable but it depends on the availability of adequate credit lines so that we have reserves."

Chair of the Economics Department, University of Zimbabwe, Professor Albert Makochekanwa said that the black market rate would eventually fall if banks were traded to a forex as announced by the central bank.

"Of course, it could be too early now but definitely the decision from the central bank will see black market rates fall," said Professor Makochekanwa.

There were a number of foreign exchange traders in the black market called business say low because the market would anticipate the development of the policy measured by Dr Mangudya.

"The business was low today, it may be the reason that it is a holiday. It could also be due to market expectation to see the measures that the central bank comes to power, "said Mr Marvelous Makunike.

The central bank released the US dollar exchange rate against RTGS balances, bond notes and all money in the multi-currency basket as it attempted to formalize trade in foreign currency.

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