RBZ Borrowing Money To Feed The Forex Auction System - Report
4 years agoMon, 27 Jul 2020 15:43:45 GMT
The RBZ is reportedly borrowing money offshore to feed the forex auction trading system further increasing its ballooning foreign debt which currently stands at US$4.5 Billion. This was revealed by the CEO of Leon Holdings a financial services company and entrepreneur Tinashe Marupata. Marupata was commenting on an article in the Chronicle when he tweeted:
RBZ has been borrowing money offshore to feed the Auction. This is a patently bad market setting move. The tax payer will assume the exchange rate losses. More worrisome is that RBZ offshore debt is US$4.5bn. Another debt assumption bill.
The RBZ introduced the forex trading auction system a few weeks ago in an effort to curb the foreign currency runaway rate which was crawling towards ZWL $100 per US$1. The government had said the auction system will keep a tight leash on money supply and help contain parallel market activities.
Source: Twitter
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