Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) said on Tuesday it will soon set up a multi-stakeholder working group to continuously review rules governing operations of the interbank market to improve its efficiency.
Introduced in February this year as a means to contain the thriving black market, the interbank market has seen over US$1.3 billion being traded on the platform to date.
But questions have been raised over its flexibility and ability to immediately adjust to market sentiment given how the parallel market has also continued to thrive despite its existence.
At the launch of the interbank market in February, the local currency traded at 1:2.5 to the United States dollar, and has overtime depreciated and settled at around $16 to the green back.
On the black market, the Zimbabwean dollar is currently trading around $21.5 to the USD.
The RBZ, after its second Monetary Policy Committee (MPC) meeting held on Monday, said efforts would continue to be made to improve the operations of the interbank market.
“Concerning the operations of the foreign exchange market, the Committee (MPC) resolved to set a working group comprising of Reserve Bank officials, treasurers from authorised dealers and members of the MPC to review the rules of the interbank market, with a view to improving its efficiency,” MPC chairman, Dr John Mangudya said.
“The Committee also underscored the need to incorporate bureaux de change in the process to expand, deepen and enhance the operational efficiency of the interbank market.”
Dr Mangudya said it was also agreed that a market tracker under the Reuters system be launched by the end of this month to enhance transparency on the interbank market.
Reuters benchmark rates are spot and forward exchange rates used globally as standard rates for portfolio valuation and performance measurement.
The system is currently providing hourly exchange rates for over 159 currencies across the world.