Govt Will Not Sell Forex At Black Market Rates- Mangudya

Reserve Bank of Zimbabwe Governor John Mangudya said Government cannot be influenced by the black market in determining foreign exchange rates on interbank transactions.

He said this is because the black market is run by a few individuals transacting small amounts. While giving oral evidence before Parliament’s joint Portfolio Committee on Public Accounts., Mangudya said prices will increase if Government sells forex at black market rates. Said Mangudya:

You should also be aware that those people in the streets took the position that they are trying to influence this economy. We should never allow people who have taken position on this economy to run it. That will be failure on the part of Parliament or Government of Zimbabwe. These are past effects of parallel exchange rate. If we allow that to happen prices will shoot through the roof. I think we have had enough in this country. I think we need to have discipline in this economy; that is what is missing. We need to have confidence, yes we love the market rate, but who determines that market. Somebody will just say on social media ‘today it’s five.’ If you go and check if there has been any trade to match that level, you will be surprised. Why should a $1 000 transaction move the whole market.

More: Herald