Zimbabwe Banks Urge Periodic Devaluation of Pegged Dollar Rate

Zimbabwean lenders are urging the central bank to introduce more frequent reviews of the embattled southern African country’s fixed-exchange rate and to ease rules on capital buffers to help the industry cope with the fallout from the coronavirus.

  • Bankers association wants more regular reviews of fixed rate
  •  Lenders recommend government start fund for firms hit by virus

The Bankers Association of Zimbabwe wants the central bank to help stabilize foreign-exchange markets through a “periodic” devaluation of the rate to better reflect the country’s economy, according to a letter sent to the central bank and seen by Bloomberg. The Zimbabwe dollar was pegged at 25 to the greenback on March 26, while the black-market rate for the U.S. currency can be as much as double that.

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