CONFEDERATION of Zimbabwe Industries (CZI) president Sifelani Jabangwe has called for transparency in the operations of the inter-bank forex trading platform, saying the information on the transactions should clearly show the willing buyer and willing seller, as well as the applicable exchange rate.
By Cloudine Matola
This comes after exporters demanded to be paid at a more favourable exchange rate of US$1: RTGS$4, instead of the US$1: RTGS$2,5 rate which they described as unfair.
The Reserve Bank of Zimbabwe introduced the forex inter-bank market which began trading on February 22, just two days after the announcement of the Monetary Policy Statement.
CZI president Sifelani Jabangwe said it is too early for exporters to demand more because it will slow down the start of the market, but he insisted on the transparency of the inter-bank facility.
“The 2,5 has been set as the exchange rate but the sellers think that the rate should be higher, but we also need to see how the system works, particularly when the liquidation starts because it is going to increase the supply on the market because at the moment this is the start of the market, so we would expect to have a sort of stalemate where you may have the buyers wanting to start at a lower rate and sellers wanting higher rate,” Jabangwe said.
Jabangwe said for now both parties should wait for the market to settle until the 30 days are up, then they can decide after that.
He also said that the inter-bank facility is an advantage to exporters since it will help with forex inflows and the businesses will grow since it will be more competitive.
Jabangwe added that those who want to pay legacy debts are able to do it now with the inter-bank facility in place although some of it will be paid by the central bank.
Jabangwe believes that the country should have more investors since some of them want an exchange rate before they can invest in the country to be able to repatriate profits at the end of the day. Investors were asking about an exchange rate, which they now have.
He also the country can expect an increase in exports, since the inter-bank forex trading platform provides a softer currency to use in business.