RBZ injects US$64 mln into the Interbank Market; ZWG to stabilize in coming weeks
Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has injected US$64 million into the Interbank Market since the beginning of September 2024 in a development which will soon ease parallel market exchange rates in the coming weeks.
The Interbank market is a platform where banks and other stakeholders trade foreign currency freely on a Willing Buyer Willing Seller (WBWS) basis. Foreign currency generated from the export surrender requirements is also channeled to the platform.
In the last weeks, parallel market exchange rates have spiraled to reach premiums of ZWG22 per every US$1 soaring much higher than the official peg which currently stands ZWG13,80.
However, in a bid to mop up excess liquidity from the economy, RBZ governor, Dr John Mushayavanhu said he has upped the game by participating vigorously at the official market to ease off the pressures.
“Pursuant to smoothening the supply/demand mismatches in August/September 2024, the Reserve Bank has during the first two weeks of September 2024, injected US$24 million into the interbank foreign exchange market.
“Furthermore, guided by the obtaining pipeline demand at banks as at 18 September 2024, the Reserve Bank has, as of today (19 September 2024) sold into the interbank market an additional US$40 million. This has resulted in a cumulative foreign currency injection totaling US$64 million for the month of September 2024 alone,” he said.
The RBZ exchequer anticipates the intervention will mop up excess liquidity in the economy and subsequently witness lower parallel market exchange rates.
The significant injection of US$50 million by the Reserve Bank in July 2024 to clear the pipeline demand for foreign currency at banks.
Mushayavanhu also announced the foreign currency inflows have remained stable and are progressing on positive path.
“Foreign currency receipts increased by 13.4% in the first eight months of 2024, compared to the same period in 2023. The increase in foreign currency receipts will ensure continued timely settlement of foreign payments from importers’ foreign currency accounts (FCAs) and the Reserve Bank’s weekly foreign currency injections from the export surrender receipts.
“In addition, the favorable performance in foreign currency receipts will continue to sustain economic activity,” added.
