RBZ urged to start buying US dollars off the market

Financial experts say there is a need for the Reserve Bank of Zimbabwe (RBZ) to start buying US dollars off the market to restore equilibrium in the economy.

They say such a move would deal with excess liquidity on the market that is causing rate instability.

Recently, the RBZ used Gold Backed Digital Tokens sales to mop up a total of ZW$246,5 million going a step further in cleansing the market of bad excess cash normally used to fuel parallel market activities.

The tokenised digital coins were introduced in a bid to shore up the national currency and also serve as an alternative investment option for the market as opposed to the conduct of chasing after the US$ on the parallel market which was the norm.

Apparently, the mopping up of the Zimdollar from the market has caused some stability to the local currency, as it gains some strength against the US dollar.

But market watchers say the gain is artificial and nothing much to celebrate about.

Meanwhile, following a taxing first half of 2023, marked by high currency volatility and brutal power cuts, business is cautiously optimistic that the second half of the year will be much better.

Zwnews