RBZ plans exchange rate indexed bonds

The Reserve Bank of Zimbabwe says it plans to introduce exchange rate indexed instruments, with adjustable interest rates, to support the foreign currency auction system.

It comes as the suspension of the Zimbabwe Stock Exchange has exacerbated the scarcity of hard currency, as the market had become the major safe haven option amid the local dollar’s rapid deterioration.

“In order to help stabilize the auction-determined exchange rate and preserve value for depositors and investors, the monetary policy committee, resolved to introduce an exchange rate indexed open market operations instrument, open for uptake by individuals and entities with excess liquidity,” RBZ governor Dr John Mangudya said on Tuesday in a statement.


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