VFEX, RBZ agree on foreign currency transactions clearance services

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By Alois Vinga

THE Victoria Falls Stock Exchange Limited (VFEX) has signed a Memorandum of Understanding (MOU) with the central bank on the clearance of foreign currency transactions services.

In an update, VFEX chief executive, Justin Bgoni said the MOU marks one of the last steps to pave way for the stock market’s opening.

“The VFEX is pleased to advise stakeholders on the signing of a MOU with the Reserve Bank of Zimbabwe (RBZ). The MOU provides the terms and conditions under which the RBZ will provide assistance to the settlement services for trades conducted on VFEX in foreign currency,” he said.

Bgoni said the completion of the modalities on the clearing and settlement of transactions with RBZ is one of the final steps towards the launch of VFEX.

The foreign currency stock market said it was looking forward to a successful partnership with RBZ as it forges ahead with plans to officially launch before the end of October 2020.

The development will now be followed by details of the administration of FCA accounts eligible to participate on VFEX which are expected to be published by RBZ, ahead of the official launch.

VFEX is a wholly owned subsidiary of the Zimbabwe Stock Exchange (ZSE) and it would be denominated in foreign currency and targets foreign investors as well as global capital markets especially the mining industry.

The stock exchange was recently issued with a licence by the regulatory authorities to operate a securities exchange and the bourse is finalising modalities to start trading soon.