Speculation was rife on social media today that the Reserve Bank of Zimbabwe was free floating the Zimbabwe Dollar in a bid to contain spiralling inflation.
The exchange rate is now at ZWL 27 to the Dollar and rising with signs of not slowing down.
The Central Bank has however set the record straight and dismissed the rumours. The below press statement was released this evening.
PRESS STATEMENT ON THE LIBERALIZATION OF FOREIGN EXCHANGE MARKET
The Bank would like to advise the public to disregard, with the contempt it deserves, the false and mischievous article circulating on social media suggesting that the Bank has devalued the local currency.
The intention of such disinformation is to cause panic and despondency, and ultimately destabilize the country’s foreign exchange markets through manipulation of the exchange rate.
We wish to advise the public that, consistent with the Monetary Policy Committee announcement on 19 November 2019, the Bank is enhancing the Reuters foreign exchange trading system to ensure efficiency and effectiveness in the allocation of foreign exchange to the productive sectors and enhancing price discovery on the interbank market.
Already, engagements have been done with Commercial Banks to ensure smooth implementation of this system. Currently, Banks are working on a user-test environment to enhance the efficiency of this foreign exchange trading system.
JP Mangudya Governor 13 February 2020
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