Zimbabwe's new currency to trade at 2.5 vs US dollar

File: Zimbabwe Reserve Bank Governor John Mangudya delivers his Monetary Policy Statement in Harare.

File: Zimbabwe Reserve Bank Governor John Mangudya delivers his Monetary Policy Statement in Harare.

AFP

HARARE - Zimbabwe's new currency is expected to begin trading at around 2.5 to the US dollar, Central Bank Governor John Mangudya said on Friday, a significant devaluation as the regulator attempts to stem chronic cash shortages.

READ: Zimbabwe plans new currency as dollar shortage bites: Finance Minister

The Reserve Bank of Zimbabwe (RBZ) on Wednesday said it would scrap a peg between its quasi-currency bond notes and the US dollar, creating a new currency from the bond notes and notional electronic dollars known as RTGS dollars.

READ:Zimbabwe's Chamisa promises new currency pegged to rand   

Trading on the Interbank market was due to begin on Monday, although Mangudya mentioned trading had started on Friday morning. 

Source
Reuters