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Monday, July 15, 2024

RBZ slashes interest rates

Story by Owen Mandovha, Business Reporter

THE Reserve Bank of Zimbabwe(RBZ) has slashed interest rates from 150 percent to 130 percent per annum in response to changing local and global dynamics.

It is good news for the private sector and borrowers after the Monetary Policy Committee resolved to reduce interest rates from 150 per to 130 percent per annum.

According to the RBZ, the move is in response to changing local and global economic dynamics which include current exchange rate and economic stability as well as the slashing down of expected global growth rates from 3.8 percent to 3 percent.

The Bank has also removed all special dispensations on foreign currency retentions by putting in place a 75 percent retention ratio for all export earnings.

The move is in response to a reduction in foreign export receipts from 4,5 billion United States dollars in the nine months to September last year to 3,6 billion United States dollars to September this year.

This is due to external inducements, mainly the weakening global prices of Zimbabwe’s export commodities such as platinum, nickel, and lithium.

The Bank also noted that it is pleased by the uptake by the transacting public of the ZIG dual currency which was introduced on the 5th of this month to preserve value.

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