THE inter-bank market is set to resume after Government and the
This is according to the terms of a memorandum of understanding signed by Afreximbank, the
"Our objective is to use this facility to enable trade finance banks in
Minister Chinamasa, and Dr
"This will create confidence and improve liquidity situation which has been affecting the smooth flow of financial intermediaries," said an analyst with a local research firm.
"It will also help RBZ to participate in financial intermediation by influencing market interest rates."
Mr Ekra said Afreximbank's decision to introduce the facility was motivated by its recognition of the serious constraints limiting the access of
The Government, through the
In addition, the central bank will provide the infrastructure required for the implementation and administration of the facility. Only solvent banks not facing fundamental problems of viability will be eligible for the facility, according to the MoU.
However, an analysis by the
"This may end up increasing the costs as the institutions have to go through intermediaries," said FTAZ.
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