17/03/2025
How are you finding the current economic climate?
“As long as the Reserve Bank of Zimbabwe (RBZ) doesn't have sufficient foreign currency liquidity to meet the demand, businesses and individuals will still resort to parallel market pricing – this policy is nice but not enforceable.
“The RBZ has no stamina to insist on this! The market may comply in the immediate to short term but medium to long run will see compounding disparities as a result.
“In addition The RBZ is saying only banks should set the exchange rate, but in practice, many businesses in Zimbabwe use alternative rates to hedge against currency instability.
“Without strict enforcement, businesses might continue to set their own rates based on market realities rather than the official rate.
“Many businesses and individuals lack confidence in Zimbabwe’s formal banking system due to past currency volatility, inflation, and policy shifts.
“Unless the RBZ ensures consistent access to foreign currency at transparent rates, businesses may continue relying on informal markets.
“This policy is not enforceable and any attempts to rail road the economy by forcing these bank rates will be detrimental as it will erode confidence and trust.”
Economist Chenayi Mutambasere commenting on the RBZ’s insistence that the exchange rate be determined by authorised dealers (banks) in the interbank market, based on the willing-buyer willing-seller (WBWS) principle and that this should be the sole guide for pricing goods and services.
