Zimbabwe sets up interbank FX market with new dollar-pegged currency

Central bank governor pledges stability, but analyst says initiative is “cancerous”

Reserve Bank of Zimbabwe
Harare skyline, including the Reserve Bank of Zimbabwe tower in the centre.
Photo: Baynham Goredema

The Reserve Bank of Zimbabwe has said it will establish an interbank foreign exchange market, as the government effectively creates a new currency and pegs it to the US dollar.

The new interbank FX market will be created with immediate effect, said the statement from the RBZ.

The move is the RBZ’s latest attempt to stem Zimbabwe’s currency crisis. But observers warned the new move could have a “disastrous” impact and deepen the country’s economic crisis.

“[The market will] formalise the

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