Business Writer
The Reserve Bank of Zimbabwe (RBZ)’s decisive steps to refine the foreign exchange trading system has been commended, with economists and banking executives hailing the interventions as progressive and proactive.
Some observers said the latest policy interventions were necessary to achieve sustainable economic stability and improve market efficiency.
Presenting the 2025 Monetary Policy Statement in Harare on Friday, RBZ Governor Dr John Mushayavanhu emphasised the bank’s commitment to enhancing the interbank foreign exchange trading.
“The 5 percent trading margin, as communicated in the previous Interbank Foreign Exchange Trading Guidelines issued at the inception of the Willing-Buyer Willing-Seller Foreign Exchange Trading Arrangements on May 3, 2024, was only applicable for the determination of the starting exchange rate following the introduction of the new currency, ZiG.
“Accordingly, authorised dealers are expected to on-sell foreign exchange purchased from willing sellers, including the reserve bank, at a margin consistent with international best practices,” Dr Mushayavanhu explained.
Another significant policy changes to refine the interbank market entails the removal of foreign exchange trading limits.
The previous cap of US$500 000 for primary users and US$100 000 for secondary users per week, per entity, has been lifted immediately.
Dr Mushayavanhu said the decision aligned with broader efforts to liberalise the forex market and facilitate smoother business transactions.
The business community and financial analysts have welcomed the changes.
Economist Dr Priscilla Dumbura praised the move, highlighting its potential to increase liquidity and encourage more transparent forex trading.
“The removal of these limits is a game changer. It allows businesses to access more forex, fostering a conducive environment for economic growth. Market players will now have the flexibility needed to conduct transactions efficiently,” said Dr Dumbura.
Echoing the same sentiment, economist and financial strategist Tapiwa Mukonori commended the RBZ for aligning the forex system with global standards.
“This policy shift is crucial in restoring market confidence. It reduces the reliance on parallel market rates and enhances the credibility of the interbank forex system. More so, businesses will benefit from the improved access to foreign currency, which is critical for operational stability,” Mukonori noted.
Additionally, the RBZ has reviewed the annual limits for prepaid international debit and credit cards, doubling the cap from US$500 000 to US$1 million.
The increase is expected to promote digital transactions and reduce cash-based foreign currency usage in cross-border trade.
Banker Raymond Madziva lauded the policy adjustments, emphasising their positive impact on the banking sector.
“This development is a major win for the banking industry and the broader economy. It facilitates smoother transactions for businesses engaged in international trade while also boosting confidence in the country’s monetary system.
“The increased limit on prepaid cards will ease transactional constraints, benefiting both individuals and businesses,” said Madziva.
Small and Medium Enterprises (SMEs) have also welcomed the move, seeing it as a boost to their operations.
Ms Rudo Moyo, a representative of the Association of Small Traders, praised the RBZ’s decision, saying that it will provide much-needed financial flexibility for small businesses.
“This is a timely and much-needed reform. Small traders have often struggled with limited access to foreign currency, which has hampered their growth and competitiveness.
“With these new measures, we anticipate a smoother operational environment and improved access to essential imports,” said Ms Moyo.
The RBZ has also assured stakeholders that streamlined Foreign Exchange Interbank Market Guidelines will be issued soon to operationalise these refinements.
Industry experts believe that these reforms, if effectively implemented, could pave the way for a more stable and competitive exchange rate environment.
As the country continues its economic restructuring efforts, the central bank’s proactive approach is seen as a vital step towards creating a more predictable and investor-friendly financial landscape.
With broad support from banking professionals, economic analysts, and SMEs, the RBZ’s latest measures underscore a commitment to foster a dynamic and resilient forex market.
