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We’re Not Against Parallel Market Forex Trading: Mangudya

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The Governor of the Reserve Bank of Zimbabwe (RBZ) Dr. John Panonetsa Mangudya has echoed surprising but most welcome sentiments to the generality of Zimbabweans always hunting for forex after he categorically stated the government and monetary authorities are not even against the foreign currency black market.

Speaking exclusively to TechnoMag, the central bank governor stressed that the monetary authorities were not “against the existence of a parallel foreign exchange market” in the country, but the rebellious behavior shown by some rogue elements seeking rewards above an unacceptable margin of 40 percent, which was a matter of concern for the financial system.

Dr Mangudya pointed out that countries including Nigeria, Angola, Zambia, Ethiopia and Malawi, among others around the world, have made use of parallel markets that operate reasonably.

Governor Mangudya added, “We are not even against the parallel market, we are against the volatility found in the parallel exchange market because internationally, the best practice is that it should not exceed 40 percent of a premium between the official exchange rate and the exchange rate.”

”There is not a country without a parallel market, but it is the variance, the premium between the official exchange rate “, said Dr. Mangudya.

As part of measures to curb rude behavior in the foreign exchange market, Dr. Mangudya said the bank will continue to use its moral suasion strategy, but if it is unsuccessful, it will take tougher measures.

 

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