Even though the difference between the black market rate and the official rate continue to run away ahead of official rates, Dr Mangudya foresees the two rates to converge in 3 months. Usually, such comments are followed by an explanation of what the Reserve Bank of Zimbabwe will do to achieve that or what is it doing to achieve that, but the Governor didn’t disclose anything. The Governor only said:
I think within three months we will have a convergence of these rates of parallel market and interbank market rate.
At the moment the parallel markets are at 4 or 5 and the bank rate is 3.3, so we are not very far from each other.
As of yesterday, the RTGS traded at 3.3 per dollar on the official market but on the black market, it’s being traded at 5 per dollar. So far RBZ’s gamble of allowing the formal trading of US dollars and RTGS dollars on the Interbank Market is failing to converge the black market rate and the official rate. So I wonder what new tricks Dr Mangudya is going to employ to achive that equilibrium.
RBZ (and we, the general people) wants the convergence of these markets so as to eliminate the arbitrage some companies and individuals are profiteering from. As a result, this practice is triggering day-to-day price hikes.