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Why the InterBank Market is a Missed Opportunity (Thread)
1) In an unconventional fashion we will use a scripture reference from the word of God in Mark 3 v 27- "No Man can enter into a strong man's house and spoil his goods except he will first bind the strong man......."
1) In an unconventional fashion we will use a scripture reference from the word of God in Mark 3 v 27- "No Man can enter into a strong man's house and spoil his goods except he will first bind the strong man......."
2) The STRONG MAN in the context of Zimbabwe's Currency crisis is the Forex Alternative Market. When the IB Market was introduced on 22 Feb 2019, the RTGS/USD rate was at $3.85. Whatever interventions we would make were supposed to match(BIND) the Alt Market (STRONGMAN).....
3) To completely eliminate the Alt Market the IB Market needed to set the initial price above the $3.85 obtaining on the 22 Feb 2019 instead of a starting rate of $2.5. This would have incentivised USD Holders to use official channels and improve forex supply.
4)Instead of allocating forex seed capital to kickstart the IB Mkt, the RBZ should simply have genuinely liberalised the market and allow Banks to match whatever the IB Market was offering. Seed capital shld hv been introduced later to improve forex supplies and sustain the mkt
