Rates Soar in Reaction to RBZ Measures

Tinomuda Chakanyuka

While activity on the parallel market in Zimbabwe has subsided after the introduction of the RTGS$100 cap per transaction on all cash-in and out transactions, the cost of accessing money has shot up.

On Tuesday when the Reserve Bank of Zimbabwe made the initial announcement that all cash-in and cash-out transactions had been suspended, people were getting cash at 40% for notes and 35% for coins.

However, since the introduction of the RTGS$100 trading cap on Wednesday, rates have soared to 70 percent for notes, and 50 percent for coins.

In a snap survey carried out by ZTN, most dealers were actually refusing to engage in any transactions involving cash-in and cash-out, leaving the few still trading to charge exorbitant rates.