Nqobile Bhebhe, Senior Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has directed businesses to index prices of all goods and services on the prevailing interbank market rate with a leeway of a 10 percent margin.
This is contained in the latest Apex Bank’s Exchange Control Circular Number 3 of 2022, which has been sent to all authorised dealers.
“Following the implementation of the willing buyer-willing seller arrangement, and in line with the dual pricing framework as per Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) (Amendment Regulations, 2020 (No.3), Statutory Instrument 185 of 2020), the Bank advises Authorised Dealers and the market that going forward, the pricing of goods and services shall be based on the prevailing interbank market rate plus a margin of up to 10 percent,” reads part of the circular.
“Businesses and all other economic agents shall obtain the daily interbank market rate on the Reserve Bank of Zimbabwe website.”
The Government is convinced the recent exchange rate movements and price escalation are being driven by negative sentiments and indiscipline by economic agents as opposed to economic fundamentals.
This has prompted the recent raft of policy measures announced by President Mnangagwa to deal with the unwarranted and sustained depreciation of local currency to arrest an upward inflation spiral.
President Mnangagwa has said the measures are meant to restore macro-economic stability, boost confidence in the economy, increase the appeal of the local currency, preserve value for depositors and investors and deal with market indiscipline.
Affirming Government’s commitment to a market-determined exchange rate system, President Mnangagwa has said the willing-buyer, willing-seller foreign exchange system, which was established last month, will now be used as a benchmark for price discovery of the exchange rate and for the smooth operation of the auction system.
“Overtime, the auction rate and the interbank rate established through the willing buyer-willing seller will provide the basis for orderly unification of the exchange rate,” he said.