RBZ to release US$500m for interbank forex

© Bloomberg. John Mangudya, governor of the Central Bank of Zimbabwe, speaks during a Bloomberg Television interview in New York, U.S., on Friday, Sept. 21, 2018. Mangudya discussed Zimbabwe’s efforts to attract investors.

The Reserve Bank of Zimbabwe has confirmed that it will be drawing US$500 million on Monday to supply the interbank forex market.

The interbank market has for the past few weeks not been all that active as firms found it difficult to access hard cash from the banks.

The move has had negative implications on the ability of several firms to stabilise prices on the back of soaring parallel market rates.

However, RBZ Governor, Dr John Mangudya revealed in a statement on Saturday that US$ 500 million forex package for the interbank will be availed on Monday.

“Government through the RBZ is drawing down US$500 million on Monday, 20 May 2019, to supply the interbank forex market to meet the forex payment requirements of business and individuals. This amount shall go a long way to stabilise the exchange rates and prices of goods and services in the economy,” said Dr Mangudya.

According to the central bank, commodities such as gold, platinum, chrome, diamonds and nickel account for more than 60 percent of foreign exchange inflows against an excess demand of forex by industries and firms.