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Why flotation?
IDASA
May 20, 2008

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In an unprecedented move in early May 2008, the central bank eased foreign exchange rules by allowing banks to buy and set the currency rate. This is an effort to put a stop to the parallel market thereby creating a willing buyer and willing seller scenario. Floatation has buoyed the market and will bring bigger players into the country - banks with the financial muscle to attract foreign currency in big enough quantities to build a threshold needed for the economy's sustenance.

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