Zimbabwe abandoned its currency at the height of hyperinflation in 2009 and adopted a basket of multi currencies which include the US dollar Rand, Pula and Pound.
Mangudya added that bank was also negotiating for a $600 million nostro stabilization facility from Afreximbank to manage the cyclical nature of Zimbabwe’s foreign currency receipts.
“The fund will be available at the end of the tobacco selling season in August,” he said.
The central bank will also establish a $5 million ring fenced fund to facilitate repatriation of dividends by foreign investors.
As at June the country had a backlog of $75 million in dividends and proceeds from sales that are owed to foreign investors.
“The bank has noticed that repatriation of foreign exchange for securities related transaction is taking a long time despite such transactions being in the first category of the priority list of foreign currency allocation,” said Mangudya
“So we are setting up this fund to promote the integrity of the stock market, to stimulate trading and demonstrate that Zimbabwe is ready for business. All incoming and outgoing portfolio funds will be pooled in this fund.”
The fund will be operational in September
To cultivate a savings culture Mangudya said the bank would introduce a no frills tax free Savings Bond which will attract an interest rate of 7 percent per annum.