Govt Moves To Scrap Current And Launch "New Interbank Forex Market Model" This November

The Director of Exchange Control for the Reserve Bank of Zimbabwe, Farai Masendu last week revealed that the central bank intends to do away with the existing “ineffective” interbank forex market model and launch a new one before the end of this month.

Speaking at the BDO Chartered Accountants business meeting held in Harare, Masendu said that the central bank was compelled by the need to alleviate loopholes in the current interbank system which allowed some actors to tamper with it. Masendu said:

The new system will have two legs. The first leg is to link between the banks and the Reserve Bank of Zimbabwe and the second leg is the link between the bank with customers. So, we want a complete cycle to make sure there is no abuse of the system in the banks.

Masendu’s remarks were in resonance with those of Finance Minister, Mthuli Ncube who told Business Times on the sidelines of a post Cabinet briefing last week that the government was enhancing the interbank market adding that the new model will be like the Reuters one.

The interbank forex market which effectively devalued the local currency was established in February this year to deal with the economic crisis but results are disappointing so far.

More: Business Times