RBZ Denies Fixing RTGS Dollar Exchange Rate

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya on Thursday denied fixing the exchange rate of the RTGS dollar. Mangudya said this when he appeared before a parliamentary committee.

The value of the RTGS dollar which authorities said they would float, has held unchanged at 2.5 to the U.S. dollar since February 22.  Concerns Government is resisting moves to allow a further devaluation of the RTGS dollar has discouraged those holding U.S. dollars from selling them at the prevailing rate.

Ministry of finance secretary George Guvamatanga said the market will determine the devaluation of the RTGS dollar. He told the committee that volumes traded on the black market were thin and that if rates on the forex interbank market rose too high, very few businesses could afford to buy dollars.