RTGS Dollars To Eliminate Multi-tier Pricing- RBZ

5 years agoSat, 16 Mar 2019 01:13:23 GMT

RTGS Dollars To Eliminate Multi-tier Pricing- RBZ

RBZ Bulawayo Regional Deputy Director Kasanda Sibanda said the use of the Real Time Gross Settlement (RTGS) dollars as a unit of account and settlement currency will help eliminate multiple pricing and other distortions.

Sibanda said this while addressing a Minex stakeholder engagement meeting in Gwanda yesterday. He said the RBZ will implement a Monetary Targeting framework, with specific monetary targets linked to the Bank’s inflation objectives. He added that the Bank is committed to the willing buyer – willing seller principle in the inter-bank foreign exchange market. Said Sibanda:

The RBZ will implement a Monetary Targeting framework, with specific monetary targets linked to the Bank’s inflation objectives. The establishment of an interbank foreign exchange market is expected to improve the supply of foreign exchange, restore export competitiveness; eliminate market distortions, and unlock the growth potential of the economy. The formal use of RTGS dollars as a unit of account and settlement currency will help eliminate multiple pricing and other distortions; while preserving foreign currency for foreign payments. The Bank is committed to the willing buyer – willing seller principle in the inter-bank foreign exchange market, and intervene in cases of market failures and other malpractices that may harm price and financial stability.