Interbank Market Overtakes Parallel Market Rate

A recent survey has revealed that the interbank market rate has gone higher than the parallel market rates. Some banks are reportedly offering more in local currency for those exchanging foreign currency.

This follows the introduction of Statutory Instrument 142 of 2019 which bans the use of all foreign currencies for domestic transactions. The SI also reintroduced the Zimbabwe dollar.

The Herald reports that when the SI was introduced, the black market rate was at US$1:$13,5 while the interbank rate was at US$1:$6,3. A recent survey by the publication revealed that the interbank rate was floating around US$$1:$8,9.

NMB Bank was on Monday paying ZW$8.9337 for US dollar. It was also selling US$1.00 at ZW$9.4863.

This is higher than that of the parallel market rate that had fallen to US$1:$7,3 for electronic transactions. The black market rate was even lower for cash transactions, fetching a maximum of US$1:$6,50.

-Herald