PARALLEL market rates remained stable yesterday following
the decision by Reserve Bank of Zimbabwe Governor Dr John Mangudya to
liberalise the United States dollar exchange rate against Real Time Gross
Settlement balances.
The containment of the parallel market rate has been
described by economic analysts as a sign of confidence in the Monetary Policy
measures announced by the central bank.
A survey by The Herald yesterday showed that the
black market rate of the US was stable as it hovered around 1:3.5 bond notes
which is the figure that was prevailing before the announcement of Monetary
Policy Statement on Wednesday.
The black market, however, maintained a two tier rate of
the US dollar to the bond note with Eco-cash transfers pegged at 1:3.8.
In an interview yesterday, Labour and Economic Development
Research Institute of Zimbabwe director Dr Godfrey Kanyenze said the black
market rate should fall gradually because what the central bank did was what
industry had been calling for. “The release of the exchange rate is what the
market has always been pushing. The parallel market rate should fall but that
will only happen if Government manages to secure enough lines of credit to back
up the RTGS dollar. You will realise that there is a lot of demand for the US
dollar to carry out various activities,” said Dr Kanyenze.
“We have to state that the falling of the parallel market
is achievable but it depends on the availability of adequate lines of credit so
that we have reserves.”
University of Zimbabwe Economics Department chairperson,
Professor Albert Makochekanwa, said the black market rate would ultimately fall
should banks be allowed to trade in forex as announced by the central bank.
“Of course, it might be too early now but definitely that
decision by the central bank will see black market rates tumbling,” said Prof
Makochekanwa.
Several foreign exchange traders in the black market spoken
to said business was low as the market anticipated how the policy measures by
Dr Mangudya would unfold.
“Business was low today, maybe the reason is that it was a
holiday. It could also be as a result of the anticipation by the market to see
the measures by the central bank coming into effect,” said Mr Marvellous
Makunike.
The central bank liberalised the US dollar exchange rate
against RTGS balances, bond notes and all currencies in the multi-currency
basket as it seeks to formalise trade in foreign currency. Herald
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