Positive response to interbank forex market

Positive response to interbank forex market
Published: 16 June 2019 (116 Views)
THE Reserve Bank of Zimbabwe (RBZ) says the interbank market has, as at June 13, handled about US$154,7 million, with voluntary sales contributing the largest amount.

Giving his presentation during the ZimTrade exporters' breakfast meeting held in Bulawayo last week, RBZ deputy director (exports) Tayengwa Chitauro said as at June 13, 2019, cumulative interbank foreign payments amounted to US$154,7 million.

He said cumulative interbank sales amounted to US$27 million while voluntary sales amounted to US$25,1 million.

Corporates contributed US$22,2 million, non-governmental organisations and embassies US$2,3 million, individuals US$607,451 and compulsory sales amounted to US$1,9 million.

"So you can see that most of the interbank liquidity is actually coming from voluntary sales. People are actually responding to the interbank positively," Chitauro said.

The interbank started trading at a mid-rate of 1US$:2,5 RTGS$ and a margin of 2,5% was applied either way.

The rate has been gradually increasing closing at the mid-rate of 1US$: RTGS$5,9 as at June 13, 2019, he said.

In terms of the interbank market payments, manufacturing inputs accounted for 39%, services 18%, manufactured goods 17%, energy 13%, education 5%, agriculture 3%, mining and medical 2%, and individuals 1%.

Another apex bank official, one F Masendu, said the seed capital which was injected by the central bank could not sustain the foreign exchange market due to low foreign currency receipts against the backdrop of huge pipeline payments.

"Moreover, moral hazard issues and trading outside the formal market under the twinning arrangements have been some of the challenges affecting the smooth operations of the interbank foreign exchange market," he said.

He said the central bank then fine-tuned the trading rules on the interbank foreign exchange market to ensure allocative efficiency by directing authorised dealers to ensure trading of foreign currency on a willing seller/ willing-buyer basis.

"If this measure is fully implemented, it would result in the unification of exchange rates and completely eliminate or reduce trading of foreign currency on the parallel market," he said.

"Activity on the interbank foreign exchange market is picking up consistent with growing exports and other foreign currency receipts," Masendu said.

- the standard

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

MISSING USD$ 3 BILLION: Mnangagwa called to account

by Mandla Ndlovu | 20 July 2019 | 64 Views

Mohadi warns drug dealers

by Staff reporter | 20 July 2019 | 30 Views

Getaway car catches fire

by Staff reporter | 20 July 2019 | 57 Views

Zimbabwe MPs demand Land Cruisers, houses in Harare

by ZimlIve | 20 July 2019 | 38 Views

Probe into Bulawayo Town Clerk suspension begins

by Staff reporter | 20 July 2019 | 35 Views

Anti-Mnangagwa activist released on bail

by Staff reporter | 20 July 2019 | 34 Views

Zec to pilot test display of voters' rolls

by Staff reporter | 20 July 2019 | 31 Views

Mnangagwa's luxury junkets cause storm

by Staff reporter | 20 July 2019 | 37 Views

Chaos, corruption in councils

by Miriam Tose Majome | 20 July 2019 | 21 Views

'External MDC branches key in national politics'

by Staff repirter | 20 July 2019 | 23 Views

Mnangagwa dates San community

by Staff reporter | 20 July 2019 | 27 Views

Zimbabwe police cells; chambers of torture

by Staff reporter | 20 July 2019 | 17 Views

Prosecutors declare incapacitation

by Staff reporter | 20 July 2019 | 29 Views

'Chiwenga on the mend'

by Staff reporter | 20 July 2019 | 29 Views

Lady teacher in trouble for abusing pupil

by Staff reporter | 20 July 2019 | 38 Views

Tshinga Dube pleads with BCC over eviction

by Staff reporter | 20 July 2019 | 25 Views

Headmaster caught pants down with married teacher

by Staff reporter | 20 July 2019 | 40 Views

Chief Mugabe selection process rocked by disputes

by Staff reporter | 20 July 2019 | 24 Views

Government programmes poorly supervised, says Zanu PF official

by Staff Reporter | 20 July 2019 | 70 Views

Zimbabwe govt works on 50:50 principle

by Staff Reporter | 20 July 2019 | 67 Views

Zanu-PF tried and tested, says Obert Mpofu

by Staff Reporter | 20 July 2019 | 60 Views

Poacher gets 9 years behind bars

by Staff Reporter | 20 July 2019 | 58 Views

Woes mount for Prophet Magaya

by Staff Reporter | 20 July 2019 | 57 Views

MDC fights for Japajapa's freedom

by Mandla Ndlovu | 20 July 2019 | 57 Views

Prophet Magaya's powerful enemies revealed

by Mandla Ndlovu | 20 July 2019 | 76 Views

Econet in major blackout

by Mandla Ndlovu | 20 July 2019 | 59 Views

'Mnangagwa redefines corruption'

by Mandla Ndlovu | 19 July 2019 | 149 Views

ZESN condemns Zanu-PF vote buying

by Staff Reporter | 19 July 2019 | 139 Views

Ramaphosa 'deliberately misled parliament'

by Staff reporter | 19 July 2019 | 105 Views

SA Home Affairs has 3000 uncollected Zimbabwe permits

by Staff reporter | 19 July 2019 | 109 Views

How CIOs benefited from Jonathan Moyo's ZIMDEF funds

by Mandla Ndlovu | 19 July 2019 | 143 Views

Mnangagwa speaks on ailing Chiwenga

by Staff Reporter | 19 July 2019 | 276 Views

Police statement on Prophet Walter Magaya

by Mandla Ndlovu | 19 July 2019 | 174 Views

Temba Mliswa writes to Nelson chamisa

by Mandla Ndlovu | 19 July 2019 | 213 Views

USD$ 3 Billion disappears in Zimbabwe

by Mandla Ndlovu | 19 July 2019 | 214 Views