The Reserve Bank of Zimbabwe, together with the Ministries of Finance and Economic Development and Industry and Commerce met with leaders of the business community yesterday and the parties made firm pledges and commitments towards stabilising the local currency.
The meeting comes as the volatility of the parallel market exchange rates have adversely affected economic growth by creating business uncertainty as well as increasing domestic prices.
According to a statement released by the apex bank, Government affirmed its commitment to continue supporting the foreign exchange auction as a dependable and transparent source of foreign currency in the country.
On the other hand, the central bank, apart from what it has been saying all along undertook to accelerate implementation of special attractive money market instruments including exchange rate linked instruments as an alternative investment avenue for local currency to the holding of USD.
It also pledged to review bank policy rates to curb speculative borrowing as well as refine and streamline the foreign exchange auction system to ensure that it continues to play its price discovery role in the foreign exchange market.
The RBZ also undertook to deal with the funding backlog of foreign exchange allotments and take appropriate measures to ensure that the backlog does not recur.
The Bankers Association of Zimbabwe (BAZ) is expected to ensure that all bids submitted to the foreign exchange auction are authentic as well as ensuring continued due diligence on all their customers and applications for foreign exchange.
Banks also committed to refraining from facilitating parallel market transactions through matching as well as promoting confidence in the banking sector by clearing the foreign currency backlog promptly.
Manuafacturers and retailers undertook to ensure responsible pricing and to comply with
the three focal areas under the SI 127 of 2020 such as non-compliance with the Bank Use Promotion Act, Abuse of auction rules and funds from auction allotments; and exchange rate manipulation or currency attacks.