RBZ Warns "Currency Speculators"9 months ago
The Reserve Bank of Zimbabwe (RBZ) has warned alleged currency speculators that their days are numbered.
The central bank accuses currency speculators of fuelling currency volatilities resulting in price instability.
According to Business Times, the Zimbabwe dollar was last week trading at ZWL$950: US$1 on the parallel market from about ZWL$800: US$1 two weeks ago.
On the formal market, last week the Zimbabwe dollar was trading at ZWL$671.44: US$1 at the auction system, down from ZWL$654.86: US$1 two weeks ago.
Addressing stakeholders in Bulawayo last week, the Reserve Bank of Zimbabwe (RBZ)’s principal economist, Stephen Moyo said:
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We are working with other arms of government like the Financial Intelligence Unit to make sure that behaviour is minimised because those speculators contribute to a lot of speculation that leads to the destabilisation of the currency.
So to all those quick rich speculators, their days are numbered and the long arm of the law will deal with them. Speculation is going to be minimal.
Business had been pursuing forward pricing models, which have an adverse impact on inflation and exchange rate expectations.
Moreover, informal businesses are shunning the local currency and are now virtually trading all products in United States dollars. | Business Times