News Round Up: In the press today 21 Feb 2019

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The Reserve Bank of Zimbabwe governor John Panonetsa Mangudya yesterday presented the Monetary policy statement and below is how the media in Zimbabwe interpreted the policy.

Zimdollar returns, 1:1 peg scrapped

THE Reserve Bank of Zimbabwe (RBZ) has effectively brought back the local currency after denoting the existing electronic balances, bond notes and coins in circulation as real time gross settlement (RTGS) dollars, making them the official legal tender, as part of a host of monetary policy measures announced yesterday – NewsDay

RBZ floats US$ exchange rate

The Reserve Bank of Zimbabwe (RBZ) has liberalised the US dollar exchange rate against Real Time Gross Settlement (RTGS) balances, bond notes and all currencies in the multi-currency basket as it seeks to formalise trade in foreign currency.

The US dollars in the new market will be retained export earnings, with the remainder continued to be allocated by the Reserve Bank for essential goods and services – The Herald

RBZ abandons 1:1 exchange rate; effectively introduces local currency

Zimbabwe, without its own currency for a decade, took steps to address its worsening economic crisis by allowing its surrogate currency, bond notes, and electronic funds to float freely against other major currencies, abandoning an official but artificial parity with the dollar.

The country has not had a local currency since 2009 when it abandoned the Zimbabwe dollar due to hyperinflation that reached 500 billion percent, according to the International Monetary Fund. To curb the ruinous inflation, Zimbabwe adopted a multi-currency system dominated by the US dollar – NewZimbabwe.Com

Zimbabwe Removes Bond Note Peg on US$, Introduces RTGS Dollars

WASHINGTON — 

Zimbabwe’s troubled quasi-currency bond note, which according to the government was trading at the same rate as the United States dollar, had its peg dumped Wednesday as the country starts establising an inter-bank foreign exchange market in an attempt to control galloping inflation, rising prices of basic commodities and the illegal money market.

In his Monetary Policy Statement delivered Wednesday, central bank governor John Mangudya said the Reserve Bank of Zimbabwe took note of the “excellent contributions from the business community, bankers, the academia, the media and members of the public on the need to establish an inter-bank foreign exchange market to formalise the selling and buying of US$s through banks and bureaux de change.” – VOA

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