What The New RTGS Dollars Mean For You
Business publication, newZWire, has posted a Monetary policy for dummies, to answer some of the questions on everyone’s mind.
Here’s a short version:
What does this mean for my deposits?
Unless of course, you are lucky enough to have one of the FCA Nostro accounts introduced in October 2018 , the money in your bank account is not really in United States dollars. It is RTGS dollars.
Do we have a new currency?
Yes. RBZ still won’t say so explicitly though.
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Is even legal?
Not yet. A legal instrument is required to reflect the new policy thrust and the government will issue it.
What is the starting exchange rate of this new ‘currency’?
RBZ governor refused to give a starting rate and said the market will decide, and in any case, the parallel rate is already 3-4 RTGS Dollars to 1 USD. Mangudya expects the rate to go down.
Will you be able to walk into a bank and get forex?
unclear
What happens to prices?
RBZ has said all pricing for domestic transactions will now be in the local RTGS$ currency.
In short, no more charging of domestic goods and services in foreign currency.
What about essential imports?
The RBZ will still allocate forex for these separately from the interbank foreign currency market. Essential imports include medicines, fuel, electricity, cooking oil and water treatment chemicals.
How will the RBZ fund these?
Funds retained from exporters.
More: NewZWire
