RBZ to end USD/ZWL fixed exchange rate on 22 June

USD Zimbabwe Dollar Bond notes

The Reserve Bank of Zimbabwe has followed on last week’s statement concerning the introduction of a foreign currency trading system which will end the interbank fixed exchange rate.

RBZ has just said that it will launch the market-based foreign currency auction trading system on the 23rd of June, this month. That means the 22nd of June will be the last day the Reserve Bank of Zimbabwe’s interbank fixed exchange rate will be used. In today’s statement, RBZ said:

Further to the Bank’s Press Statement of 8 June 2020 by which the Monetary Policy Committee advised that a formal market-based foreign exchange trading system will be put in place, the Bank wishes to advise the public that the Foreign Exchange Auction Trading System will be operational with effect from 23 June 2020.

The Adoption of a Foreign Currency Auction System is expected to bring transparency and efficiency in the trading of foreign currency in the economy.

The Auction system has a chance of curbing the black market and put moneychangers out of business as we pointed out in this article last week.

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