US dollar bounces back in Zimbabwe

March 27, 2020

Harare-Just under a year after abandoning the use of multicurrency in local transactions, the Reserve Bank of Zimbabwe has given the green light to citizens to pay for goods and services.

In a statement, RBZ governor John Mangudya said the measures were aimed at easing the financial pressures brought about by the global pandemic (Covid-19.

“Government through the RBZ would like to advise the public that it is making it easier for transacting public to conduct business during this difficult time by making available an option to pay using free funds (foreign currency) for goods and services chargeable in local currency,” the statement read in part.

“The dispensation to use free funds will not only make payment for goods and services easier, but will also promote social distancing as banks will be able to provide digital financial services to their customers that include producers of gold, tobacco and cotton and recipients of diaspora remittances.” said Mangudya

He added “Digital financial transactions will go a long way in enhancing confidence in the economy and assisting banks to play a critical role as systemic stabilisers of the economy during these unprecedented times.”

Mangudya said the US dollar will be pegged against the ZWL$ at the current interbank rate of ZWL$25.

“The bank, with immediate effect adopted a fixed exchange rate system at the current interbank level of $25 against US$1. This measure will be reviewed when the markets stabilises from the effects of COVID-19,” he said.