Zimbabwe needs 200 bureaux de change systems to ensure that the inter-bank market performs
Findings of a study which will be presented to the central bank have revealed that Zimbabwe needs at least 200 bureaux de change systems to ensure that the interbank market performs in an efficient manner.
With the Reserve Bank of Zimbabwe (RBZ) having licensed over 46 bureaux de change that are located across the country in a move that increased the number of participants in the interbank foreign currency market over and above banking institutions, Zimbabwe still falls far short of the need to decentralize the institution.
An Economist, Professor Ashok Chakravarti says the need to license more bureaux de change institutions will also create a platform for more foreign currency to be channeled in the formal systems for the benefit of the economy and strategic sectors.
“The system of the bureaux de change should, however, be transparent. It is highly true the need to establish more institutions becomes of greater importance in increasing value to the economy, especially the issue of forex inflows in the formal markets,” he said.
Basically, a bureau de change is a business where people can exchange one currency for another and in Zimbabwe, it makes part of the interbank foreign currency market.