Under the system backed by the RBZ, Zimbabwe banks let people decide the exchange rate. The central bank made clear Wednesday that it stays hands-off with exchange rates. They pointed out that buyers and sellers set these rates through regular bank transactions, just as the 2024 Monetary Policy Statement explained.
Market experts notice good signs from this approach. The currency value stayed pretty steady these past six months. The gap between official bank rates and street market rates keeps shrinking, showing the two markets moving closer together, exactly what officials hoped would happen.
Economist Malone Gwadu explained that foreign currency holders can name their prices when selling through banks. He stressed that no fixed rate exists from the RBZ anymore. Basic supply and demand principles drive all rate changes instead of government decisions. The market itself decides what money is worth.
Economic expert Persistence Gwanyanya added that banks must follow global standards when they average out rates. He said banks should keep their profit margins reasonable and fair. These margins need to stay within acceptable ranges that match international banking practices.
The local ZiG money has held strong against US dollars for half a year. Officials refined the trading system to depend completely on willing buyers meeting willing sellers. This framework removes government interference and lets natural market forces determine currency values.
Market experts notice good signs from this approach. The currency value stayed pretty steady these past six months. The gap between official bank rates and street market rates keeps shrinking, showing the two markets moving closer together, exactly what officials hoped would happen.
Economist Malone Gwadu explained that foreign currency holders can name their prices when selling through banks. He stressed that no fixed rate exists from the RBZ anymore. Basic supply and demand principles drive all rate changes instead of government decisions. The market itself decides what money is worth.
Economic expert Persistence Gwanyanya added that banks must follow global standards when they average out rates. He said banks should keep their profit margins reasonable and fair. These margins need to stay within acceptable ranges that match international banking practices.
The local ZiG money has held strong against US dollars for half a year. Officials refined the trading system to depend completely on willing buyers meeting willing sellers. This framework removes government interference and lets natural market forces determine currency values.
