The exchange rate is averaged: RBZ Governor

Business Reporter

The Reserve Bank of Zimbabwe (RBZ) revealed that the prevailing exchange rate is an average calculated from all the obtaining rates from the willing buyer and willing seller at banks.

Speaking at the ZiG Awareness and Feedback meeting with retailers at the RBZ headquarters, Dr. Mushayavanhu said that the exchange rate is an average of all the rates obtained from banks.

“The issue of the exchange rate needs to be clarified, first of the Statutory instrument issued, it was saying retailers must use the rate that is on the RBZ website.

“The rate we publish on the RBZ website is an average of all the rates we obtain from the willing buyer and willing seller. Bank A has traded at 14ZiG, bank B at 12ZiG and bank C 15ZiG, we put all that together and come up with an average rate,” said Mushayavanhu.

The Governor also emphasised the need to display the exchange rate in retail shops and banks respectively.

“In your shop, if you bank for example with ZB bank and that day ZB bank is selling at 13,99ZiG, we have the rate displayed in your shop. If you are visited by any law enforcement agent you display that rate and if your tills show that is the rate that is being used there should be no problems,” Mushayavanhu said.

The Governor also advised retailers to have rate sheets for their banks that show both the buying and selling rates to avoid problems that may arise.

Meanwhile, retailers play a pivotal role in the success of ZiG adoption, the meeting with RBZ has helped them air out the challenges they face emanating internally and externally. The RBZ Governor continues to show his willingness to find solutions for the Zimbabwean economy with all economic players.