Zimbabwe commences trading new currency RTGS Dollars with initial rate 2.5 per USD

February 20, 2018 will always be remembered in the history of Zimbabwe as on this day the country introduced a new form of currency RTGS Dollars bidding adieu to bond notes and coins. On February 22, the country started trading its new currency two days after the announcement.

The initial rate for Zimbabwe’s currency (RTGS Dollars) will be 2.5 per US Dollar, as revealed by The Reserve Bank of Zimbabwe’s Governor John Mangudya. The rate was agreed on with the commercial lenders.

Since the demonetization, the black-market rate for the quasi-currencies has since strengthened little bit. But roughly at 3.5 per dollar on February 22, according to local website marketwatch.co.zw, they’re much weaker than Mangudya’s initial level.

According to John Mangudya, the black-market prices for real dollars were so high because it had been illegal to trade that way and thus they carried a risk premium, which he said would drop now that trading had been formalized.

“The market has been clamouring for its introduction. This is a measure that removes most of the distortions that were impacting the market,” George Guvamatanga, the permanent secretary in the finance ministry.

Also Read: Adieu to Zimbabwe’s bond note era! Reserve Bank introduces RTGS Dollars