The Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said that the central bank will inject more liquidity on the interbank market to stabilise the exchange rate and ensure efficient forex allocation through the market.
Speaking during the inaugural press conference for the central bank’s recently commissioned Monetary Policy Committee (MPC) in Harare on Tuesday, Mangudya said:
As the central bank, we are working on a facility to ensure that at least we also increase funding into the interbank market. We are going to be more efficient in disbursing those funds.
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This should ensure a stable exchange rate and efficient foreign exchange allocation through the market.
The RBZ liberalised the exchange rate on February 23 this year, from the 1:1 between the bond notes, introduced in 2016, and the US dollar.
The liberalised currency started trading at 2.5 against the greenback but it has precipitously fallen in value to 15.6 on the official interbank market, and 20 on the alternative market as of 30 October 2019.