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Mangudya Ensures Approved Bids That Match Available Forex

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Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Panonetsa Mangudya has made assurances that the central bank would do everything possible to ensure approved bids that match available forex.

“Going forward, as directed by His Excellency, the bank will make sure that we only auction foreign currency that is immediately available to the bank to prevent a build-up of the backlog, which has not been matched by the liquidity flows.”

Government also made a raft of policy interventions, including a temporary ban on bank lending, which has since been lifted, to arrest local currency volatility and tame surging inflation causing volatility.”

Some of the reasons driving local Currency volatility include what Governor Dr Mangudya has always lambasted, that is speculative trading of foreign currency and equities, including general lack of market confidence owing to lingering fears over hyperinflation.

Attempting to rein in inflation, the central bank Governor recently hiked the policy rate to 200 percent from 80 percent previously.

Governor Mangudya used to allocate an average of US$45 million weekly to importers, but the figure has since come down to an average US$25 million weekly.

Since liberalising the exchange rate in February 2019 when the local currency was reintroduced, the Zimbabwe dollar was last week trading at US$1/$376 on the interbank and about US$1/$700 on the parallel market.

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