By 
By Ross Moyo
The RBZ is taking a bold step to automate its foreign exchange trading system, moving away from the current manual collection of data from commercial banks. The move is aimed at enhancing transparency and accuracy in the currency market.
Governor Dr John Mushayavanhu explained that the current system relies on banks voluntarily submitting their transaction data, which has limitations.
“The market does not deliver itself,” he said. “So, we have said let’s remove the manual elements to ensure that price determination and price discovery is done in an electronic manner.”
The algorithm-based system will allow anonymous order-matching, preventing collusion and ensuring trades occur at fair market prices. According to Dr Mushayavanhu, “The market does not deliver itself… So, we have said let’s remove the manual elements to ensure that price determination and price discovery is done in an electronic manner.”
The RBZ plans to subject the finished system to independent scrutiny by an international organisation before going live, ensuring the platform’s integrity.
The introduction of the algorithm-based trading platform is a significant step in the central bank’s broader strategy to enhance policy credibility and entrench macroeconomic stability.
The move has been welcomed by banking sector representatives who participated in the testing phase.
The system is expected to be launched soon, and market participants are eagerly awaiting its impact on liquidity and price formation in the interbank market.
The RBZ’s innovative approach is expected to position Zimbabwe as a leader in digital financial infrastructure.
The automation of the forex trading system is a significant milestone in the country’s financial sector development.
Comments