Formal trading in new Zimbabwean currency begins
The initial rate for Zimbabwe's currency, known as RTGS dollars, will be 2.5 per US dollar
Harare/Johannesburg — Zimbabwe has begun formal trading of what’s effectively a new currency as it tries to ease a shortage of dollars that’s crushed the economy. The initial rate for the Southern African nation’s currency, known as RTGS dollars, will be 2.5 per US dollar, central bank governor John Mangudya told business leaders on Friday in Harare, the capital. The rate was agreed on with commercial lenders, he said. On Wednesday, Mangudya announced that the government would no longer insist that a quasi-currency known as bond notes and RTGS$, an electronic equivalent, were worth the same as the US currency. They’ve been merged and allowed to trade freely on an interbank market. The black-market rate for the quasi-currencies has since strengthened slightly. But at roughly 3.5 per dollar on Friday, according to local website marketwatch.co.zw, they’re much weaker than Mangudya’s initial level. The governor said black-market prices for real dollars were so high because it had been i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.