US$ bounces back, exchange rate fixed

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Xolisani Ncube

The Reserve Bank of Zimbabwe has re-introduced the use of multi-currency system as a way of fighting the highly contagious Covid-19 pandemic.

In a statement issued Thursday afternoon, RBZ governor John Mangudya said the move to re-introduce the multi-currency regime was temporal and aimed at assisting in transacting at the time of a crisis.

“This intervention takes into account the country’s limited access to foreign currency which is adversely affecting the balance of payment,” Mangudya said.

Mangudya said the use of the free funds was an enablement of easy transactions by those with free funds as well as tohelp traders get foreign currency to restock their goods in the midst of a coronavirus.

The world over is battling to deal with the covid-19 virus and it has resulted in goods and services being unavailable and for a country like Zimbabwe, with a weak currency, it has been battling to procure essential equipment to deal with the pandemic.

Besides that, Mangudya announced that the Central Bank had abandoned the use of the managed floating of the foreign currency against the local currency and pegged it at USD$1 to $ 25.

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