Zimbabwe currency watcher switches from black to formal market


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A local currency watcher, which was giving its followers rates on the black market as well as those on the interbank market when it was introduced, says it will now focus on rates at the various formal markets to give its readers the best value for their money.

Zimbollar, which has welcomed the re-introduction of the Zimbabwe dollar and the opening up of the formal currency market through banks and bureau de changes, says it is signing up authorised foreign exchange dealers to come up with a new rates dashboard.

“This is as clear as it comes,” it said in reference to an exchange slip from one of the dealers which showed that the dealer was buying the greenback at 8.5 yesterday.

“Trades are now going through the normal channels. This calls for a strategic shift on our product offerings as ZimBollar and hence our current efforts in signing up authorised foreign exchange dealers as ‘Contributors’ on our rates dashboard.

“When we resume posting the rates, it will be an improved experience to our followers. For the first time we will be able to tell which authorised dealer is buying and selling at what price. That will help the market to standardise and have uniformity.

“Through the same network we will be able to show the volume of trades going through the ‘Contributors’ signed up to ZimBollar.“

Zimbabwe reintroduced the Zimbabwe dollar on Monday shocking the nation and the entire market but black-market rates plunged as it maintained a tight grip on the availability of bond notes.

At one time the greenback was going for 4.50 bond notes but was at RTGS7.50.

Rates on the formal market were higher than those on the black-market, after the Reserve Bank of Zimbabwe left it to the market to determine their own rates.

The Old Mutual Implied Rate, which has been playing havoc on the market and is used mostly by investors, was yesterday down to 8.73 after peaking at 11.52 on 25 June, a day after the government re-introduced the local dollar.

Finance Minister Mthuli Ncube today said the re-introduction of the local currency had given Zimbabwe control over its economic destiny.

“We are under no illusions about the rough terrain we will face. There will be many more obstacles to face. But by taking back control of our fiscal and monetary mechanisms, by taking our fate firmly in our own hands, we are one step closer to reaching our destination,” he said.

 

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The Insider

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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