RBZ Warns Govt Suppliers Against Participating In Parallel Market Forex Trading

The Reserve Bank of Zimbabwe (RBZ) has warned government suppliers against participating in parallel market forex trading.

In a statement seen by Pindula News, the central bank said those doing so will be destabilizing prices. Reads the statement:

RBZ would like to urge suppliers of goods and services recently paid by Government to refrain from participating on the parallel fx market in order to sustain price stability.

The Zimbabwe dollar was reintroduced in June 2019 and has since then been losing value against other currencies, mainly the United States Dollar.

The apex bank is adamant that the stability of the Zimbabwe dollar is largely affected by the activities of saboteurs who participate in parallel market foreign currency trading.

There was some stability in the last quarter of 2022 but analysts warned the stability of the Zimbabwe dollar was largely a result of its shortage in the market. They said once the government starts paying contractors and suppliers, the local currency would respond.

They said the only solution to the local unit’s volatility is to liberalise the market for the local currency. 

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