New Zimbabwe.com

Mangudya pegs US$ at 1:2.50 for RTGS as black market rates stay at 1:4

By Business Reporter


RESERVE Bank of Zimbabwe (RBZ) governor John Mangudya Friday pegged the US: RTGS dollar exchange rate at 1:2,50 to allow financial institutions to start transacting through the newly launched interbank exchange facility.

Briefing guests at a breakfast meeting in Harare Friday, Mangudya revealed that the apex bank has since started disbursing forex to banks at a reasonable premium.

“We started giving the banks foreign currency on Thursday at a rate of 2.50 RTGS dollars against one United States dollar and all banks are not expected to dispose the forex at exorbitant rates because their costs have been factored into that premium,” he said.

Mangudya said the official rates will be published daily in a move aimed at bringing transparency to the system.

As he made his announcement, parallel market rates Monday rose to rates of US$1 to RTGS$4, up from $3.70 RTGS dollars earlier during the week.

However, the central bank chief said official rates published were just a starting point and in line with international best practices.

He has also directed banks to dispose 70 percent of their forex towards industrial productivity needs.