RTGS Dollars To Eliminate Multiple Pricing: RBZ

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Reserve Bank of Zimbabwe (RBZ) has revealed that the formal use of the Real Time Gross Settlement (RTGS) dollars as a unit of account and settlement currency will help eliminate multiple pricing and other distortions; while preserving foreign currency for foreign payments.

Addressing a Minex stakeholder engagement meeting in Gwanda yesterday, RBZ Bulawayo Regional Deputy Director Kasanda Sibanda said the bank will implement a Monetary Targeting framework, with specific monetary targets linked to the Bank’s inflation objectives.

“The RBZ will implement a Monetary Targeting framework, with specific monetary targets linked to the Bank’s inflation objectives.

“The establishment of an interbank foreign exchange market is expected to improve the supply of foreign exchange, restore export competitiveness; eliminate market distortions, and unlock the growth potential of the economy,” said Kasanda.

He added that the Bank is committed to the willing buyer – willing seller principle in the inter-bank foreign exchange market.

“The formal use of RTGS dollars as a unit of account and settlement currency will help eliminate multiple pricing and other distortions; while preserving foreign currency for foreign payments.

“The Bank is committed to the willing buyer – willing seller principle in the inter-bank foreign exchange market, and intervene in cases of market failures and other malpractices that may harm price and financial stability” he added.

Minex is a physical and virtual information platform designed to ensure that the mining value chain is brought together for sustainable economic growth.

Minex connects small scale miner with leading stakeholders in the mining sector that include suppliers, buyers, financial institutions, policymakers, and the community.

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