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Reserve Bank of Zimbabwe to mop out Z$1.2 billion from the market by end of this week

The Reserve Bank of Zimbabwe has introduced several measures to strengthen the Zimbabwean dollar that was made the only legal tender for local transactions from today.

It has directed banks to transfer the Zimbabwe dollars they are holding to the Reserve Bank in a measure that is expected to mop out $1.2 billion from the market by the end of this week.

It has increased the interest rate on its overnight window from 15 percent to 50 percent.

It has removed administrative limits on the operation of bureaux de change and on the cap on margins for banks for the interbank foreign exchange transactions.

It has put in place lines of credit amounting to US$330 million for the importation of fuel, cooking oil and wheat and has increased the supply of foreign currency into the interbank market by ensuring that at least 50 percent of the surrender portion of foreign currency is sold to the interbank market.

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This post was last modified on %s = human-readable time difference 9:43 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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  • The tactic used is good. Why is that the opposition is happy about the suffering of the people. Brace the idea and let us support it. People in Zimbabwe are confused, why do you cry to use the US.

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