Captains Of Industry Say Manipulation Of Interbank Market Should End

Confederation of Zimbabwe Industries (CZI) President Mr Sifelani Jabangwe

Confederation of Zimbabwe Industries (CZI) president Sifelani Jabangwe has called for authorities to allow the interbank market to operate freely without manipulation.

The interbank market was established by the Reserve Bank of Zimbabwe following the floating of the bond note which had been set at par with US dollar.

While addressing business executives at the International Business Conference at the ZITF in Bulawayo on Wednesday, Jabangwe said:

Any further delays to allow markets to operate without interference will work against the good of the manufacturing sector and the economy at large.

We need to re-establish the equilibria among sectors similar to what prevailed before August 2018. Then with an effective interbank market, allow the country to grow.

… There are also concerns that the regulatory hand is determining the foreign currency exchange rate on the interbank platform, hence it’s not viewed as a rate determined by willing-buyer willing-seller trades.

The interbank market allows businesses to get foreign currency at a willing buyer willing seller basis.

However, the rate has continued to lag behind the parallel market and foreign currency has not been attainable for most businesses.

Source: Pindula