Story by Owen Mandovha, Business Reporter
The Reserve Bank of Zimbabwe has devalued the local currency which is now trading at 24.39 against the United States dollar following the further liberalisation of the foreign exchange market in response to the resurgence of exchange rate pressures.
In a statement, Reserve Bank of Zimbabwe Governor, Dr John Mushayavanhu said the bank has with immediate effect reviewed upwards the bank policy rate from 15 percent and 20 percent to 35 percent.
It also increased and standardised statutory reserve requirements for both demand and call deposits on local and foreign currency from 15 percent and 20 percent to 35 percent.
Individuals will be restricted to carry a maximum not exceeding US$2 000 out of the country from US$10 000.
The bank also noted that the measures will contain any exchange rate risks, while keeping prices of goods and services in check.
