The Reserve Bank of Zimbabwe (RBZ) released a press statement on their social media platforms with the caption
“Resolutions of the Monetary Policy Committee (MPC) Meeting held on 1st April 2022”
In the statement, RBZ expressed being concerned about annual inflation that has risen from 66.11% to 72.70%. The Monetary Policy Committee (MPC) also noted that global inflation is on the increase because of the Russia-Ukraine war.
Due to the inflation caused by unstable prices of oil, gas, fertilizers and other related products (according to the MPC), the statement also outlines new measures taken by the RBZ focused on inflation reduction.
The most interesting measure is the fifth one which states that the RBZ is liberalising the foreign exchange market by allowing transactions up to US$1 000 under an arrangement agreed upon between banks and the Bank. Individuals with free funds an entities/corporates holding foreign exchange in their foreign currency accounts will be free to sell foreign currency to banks on a willing-buyer-willing-seller basis.
This measure depending on the rate offered by the banks will lessen the power held by the black market over the US dollar. Read the full statement issued on RBZ’s Twitter page below
