Government pumps $500m into market

Zimbabwe today supplied the interbank foreign exchange market with $500m as its tried to resuscitate a currency trading system implemented in February that’s been plagued by a lack of liquidity. The central bank in February created the interbank market and said its quasi-currency, known as RTGS, would no longer be pegged to the dollar but would be allowed to trade at fair value on the market. However, a report on the Fin24 site notes that a lack of available dollars has meant that it has been little used and its rate of 3.45 to the dollar is well below the black market rate of 7. The currency, now known as RTGS dollars, isn’t traded outside Zimbabwe. 'This amount shall go a long way to stabilise the exchange rates and prices of goods and services,' said Reserve Bank governor John Mangudya.