RBZ, Treasury set to make foreign trading announcement today. The parallel rate is expected to fall.
The Reserve Bank usually make these announcements when the parallel rate goes berserk. The parallel rate is currently at 40 where as the inter-bank rate is at 18.26. OMIR is pegged at 52.
Previously the Reserve Bank of Zimbabwe made announcements such as freezing of accounts which resulted in the rate falling with over ten points. In October 2018, Finance Minister Mthuli Ncube made an announcement that the Afrexim Bank had agreed to guarantee the one as to one convertibility of the bond note to United States Dollars. The announcement resulted in the rate falling from 600% to 100%.
During September 2019, The Reserve Bank also announced the closing of bank accounts belonging to oil tycoon and Sakunda Holdings owner Kuda Tagwirei causing the rate to fall from 20 to 14.
Zimbabweans are anticipating a fall in the parallel market rate from the announcement. Rumour is that the RBZ is going to launch the Reuters system. The system will result in the banks buying at rates that compete with the inter-bank rate. The move is expected to result in an inflow of USD into the market.
The move will result in banks being able to trade currency. The interbank rate is expected to move towards black market. However, analysts do not have full confidence in the liberalisation of the exchange rate as they fear that the RBZ will put circuit breakers to avoid a spike of the rate.