VFEX, RBZ agree

The Victoria Falls Stock Exchange (VFEX) has signed a memorandum or understanding with the Reserve Bank of Zimbabwe (RBZ) which will see the latter providing settlement services for the United States dollar-denominated bourse.

The establishment of the VFEX is part of the Government’s broader plan to turn the resort town into an offshore financial centre (OFC).

VFEX is under Zimbabwe Stock Exchange (Pvt) Limited.

Said ZSE chief executive Justin Bgoni: “The Victoria Falls Stock Exchange Limited is pleased to advise stakeholders on the signing of a Memorandum of Understanding with the Reserve Bank of Zimbabwe.

“The MOU provides the terms and conditions under which the RBZ will provide assistance to the settlement services for trades conducted on VFEX in foreign currency.

“The completion of the modalities on the clearing and settlement of transactions with RBZ is one of the final steps towards the launch of VFEX.”

It is expected that details of the administration of FCAs (foreign currency accounts) eligible to participate on VFEX will soon be published by the apex bank.

A key responsibility of the RBZ, among other things, is the administration of the Large Value Payment Systems (LVPSs) in Zimbabwe made up of the Zimbabwe Electronic Transfer and Settlement System (ZETSS), the real time gross settlement (RTGS) system for Zimbabwe and the Central Securities Depository (CSD) system for government securities. — Herald.