RBZ Commitment Allows Market To Lead Price Determination As Zim$ Crosses Psychological $100 Mark
The Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Panonetsa Mangudya, has been credited for allowing market forces determine the rate despite the Zimdollar exchange rate crossing the psychological $100 mark barrier against the US dollar after sliding to $105,69/US$1 on the Reserve Bank of Zimbabwe weekly auction yesterday.
Results of the yesterday’s forex auction showed the Governor’s commitment to allowing the market to lead the price determination. Over the past seven weeks the auction rate has gradually followed market sent easing by 19,36 percent against the US dollar to settle at $105,69 in the last auction this week.
This comes after the RBZ Governor pledged he would always allow the market to decide the exchange rate direction through the auction market, as has been clamoured for by industry and commerce.
“This will go a long way in restoring confidence in the foreign exchange auction system as
well as establishing the foreign exchange market,” said RBZ Governor Dr John Mangudya.
This also follows previous pledges by the Government that it would provide funds to clear the ring-fenced backlog on the RBZ run weekly foreign exchange Dutch auction system.