By Linda Masarira| The introduction of the market determined rate for the USD and the RTGS balance will bring about sanity in the markets and pricing of goods.
We will witness the black market rate coming down to its true value as opposed to the induced value that it has been trading on the parallel market.
This is mainly due to
- Elimination of the middle man
- Removal of bottle necks as money changers tend to hoard and offload the USD for speculative purposes.
- Transparency in the determination of the market value of the USD.
Key to the success and sustenance of the interbank forex market is the qualification of players who can access the forex. It will be prudent for exporters and import substitution players to access the forex without being crowded out or priced out by importers of luxury goods that have no correlation to production and influence the countries ability to generate more forex and reduce imports.
The separation of essential goods such as cooking oil from the forex markets to the existing letters of credit is a welcome news as it protects critical industries that have a huge impact on the cost of basic goods for the ordinary person.
We should witness prices coming down within a week or two with artificial shortages of goods on the shelves disappearing.