HARARE (Reuters) – Zimbabwe’s new currency is expected to begin trading at around 2.5 to the U.S. dollar, Central Bank Governor John Mangudya said on Friday, a significant devaluation as the regulator attempts to stem chronic cash shortages.
The Reserve Bank of Zimbabwe (RBZ) on Wednesday said it would scrap a peg between its quasi-currency bond notes and the U.S. dollar, creating a new currency from the bond notes and notional electronic dollars known as RTGS dollars.
Trading on the Interbank market was due to begin on Monday, although Mangudya mentioned trading had started on Friday morning.
Reporting by Alfonce Mbizwo; Writing by Joe Brock; Editing by Alexandra Zavis
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