Zimbabwe’s acceptance that most business will take place at a newly introduced interbank rate for the Zimbabwe dollar amounts to an effective devaluation of the local currency, a policy maker said.
The Reserve Bank of Zimbabwe introduced the interbank rate on May 9, two days after President Emmerson Mnangagwa temporarily barred banks from lending and introduced a raft of other measures in a bid to halt the plunge of the Zimbabwe dollar on the black market. The government sets its official rate at a weekly auction.
