Reserve Bank of Zimbabwe (RBZ), on social media, has threatened to freeze accounts of those manipulating the exchange rate as the US Dollar gains value against the local RTGS this week.
The central bank says there are some exchange rate manipulators that are exerting pressure on the forex market with the intention of destabilizing the stability that the country has been experiencing over the past four months.
“Such malpractice is not warranted as money supply has remained under control for the past five months. The matter has been escalated to the Financial Intelligence Unit that is proceeding to investigate and freeze the accounts of those upsetting the market,” the bank says.
The black market rate, which on Monday was at US1: 23RTGS is now at US$1: 25 RTGS.
RBZ Governor Dr. John Mangudya deliberating on the Monetary Policy Committee (MPC) meeting says the stability of the exchange rate witnessed before the plunge was a result of measures taken in 2019 to manage money supply.
“This stability has significantly assisted in anchoring inflation expectations emanating from benchmarking of domestic prices to exchange rate movements,” Mangudya said.
“The observed exchange rate stability was on account of adherence to monetary targeting, coupled with improved confidence in the use of the local currency and enhanced foreign currency inflows.”
Stability in the exchange rate started in September 2019 according to Mangudya.
A plunge of the RTGS local currency to the US dollar is likely to result in an increase in prices in Zimbabwe.
Public transport prices have already increased in response to the new US Dollar to RTGS rate.