By A Correspondent- Finance and Economic Development Minister Mthuli Ncube and RBZ governor John Mangudya released a statement that says they are putting a system in place that will allow foreign exchange to be traded freely amongst banks and permit a true market exchange rate to be determined.

Part of their statement reads:

Zimbabwe has had no transparent and effective foreign exchange trading platform for a long time. Consequently, official rates have not been effectively determined, while a thriving parallel market has developed.

To correct this anomaly, an electronic forex trading platform based on the Reuters system is being immediately put in place. This platform will allow foreign exchange to be traded freely amongst the banks and permit a true market exchange rate to be determined.

The Bureaux de Change, will also participate on this platform through their Authorised Dealers. The trading rules of the Bureaux de Change are being liberalised so that they can conduct all wider range of transactions.

The RBZ will continue to be a significant player in the market, providing liquidity to stabilise the exchange rate, where necessary. This mechanism will be immediately operational. All the foreign exchange requirements will be available through the interbank market which will use a market determined exchange rate.

Watch the live video loading below for the full text of this statement…