The Inter-bank Market will sustain all foreign currency demands for the entire economy with individuals and companies being implored to utilise it for legitimate foreign currency payments.
In an exclusive interview with ZBC News, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya assured the nation that industry will not be crippled by foreign currency shortages after the scrapping of the multi-currency regime by government.
Dr Mangudya said Zimbabwe generates enough foreign currency to support the economy but it is the inefficient allocation of the resource which had become problematic.
The scrapping of the multi-currency system will redirect all foreign currency resources for critical imports through the inter-bank market.
“We have put in place enough mechanisms so that we can fully support the functioning of the inter-bank market so that importers can easily access forex to pay for foreign services and goods. We are selling 50% of the surrendered export proceeds onto the inter-bank market as a way of supporting the local inter-bank market,” he said.
On payment of airline services and DSTV subscriptions, Dr Mangudya explained that these are regarded as foreign payments.
“There are some services which though look local but are generated in foreign countries and these include airline services. Subscriptions for foreign television services is also regarded as foreign payment so nothing will change in that regard and they will continue to be paid in foreign currency though we will prioritise critical payments,” said Dr Mangudya.
Dr Mangudya added that the ban on the use of foreign currency for local transactions is simply a way of adopting basic economic procedures, adding that no country in the world should expect to prosper using another country’s currency.