Official rate remains 1:1, says Finance Minister

Prof Mthuli Ncube

Government says the 1:1 rate between Real Time Gross Settlement (RTGS) balances and the United States dollar will remain in force in order to protect the value of these balances.

Zimbabwe currently uses a multicurrency system and Finance Minister Mthuli Ncube said the system will be maintained going forward until specific ‘fundamentals’ are aligned.

“Government recognises concerns surrounding RTGS deposits, and we commit to preserve the value of these balances on the current rate of exchange of 1 to 1, in order to protect people’s savings,” said Minister Ncube.

“In view of the need for an orderly currency reform programme that will be followed when the economic fundamentals are right to do, the country shall continue to use the multi-currency system which was put in place by Government in 2009.

“This system entails that foreign exchange earners are not prejudiced of their regulatory foreign exchange receipts and that those who do not earn foreign exchange have access to foreign exchange through the banking system as per the current policy of foreign exchange management system. In parallel, the Reserve Bank shall continue to maintain adequate resources for the import of essential commodities.”

Treasury added that it is also reinforcing Nostro foreign currency accounts with a statutory instrument (SI) to guarantee that these are private deposits, and neither the Reserve Bank nor Government can have access to them.