RTGS Dollar Balances Remain 1:1 With US Dollars - Mangudya

Reserve Bank of Zimbabwe governor John Mangudya says the RTGS Dollar value only changes when a person wants to get US Dollars and its value would be determined by market forces.

Responding to a local publication, The Standard on the value of RTGS Dollar balances in relation to US Dollars, Mangudya said:

People should not get confused. In the bank, the RTGS balances have the same value with the USD but when one wants forex at the bank, then it changes and its value is determined by the rate prevailing at that particular bank.

We have not devalued the RTGS balances but allowed people to access the forex at a rate which is competitive and allows the economy to grow.

Your $1 000 in the bank is still $1 000. However, when you want to get the USD$, the rate and value will be determined by the market.

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Mangudya’s bizarre assertion follows the decision by the RBZ to float the local currency against major currencies, a move away from the 1:1 official exchange rate.

On Saturday the government gazetted a Statutory Instrument (SI) making the establishment of the local bond notes, real-time gross settlement (RTGS) balances and bond coins a separate legal tender called RTGS Dollars.

RTGS Dollars will compete on the money market together with other currencies in the multi-currency basket.

More: The Standard