The Victoria Falls Stock Exchange (VFEX) has signed a memorandum or understanding with the Reserve Bank of Zimbabwe (RBZ).

The agreement will see Zimbabwe’s apex bank providing settlement services for the country’s second stock market.

VFEX is a United States dollar-denominated bourse.

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

VFEX is under Zimbabwe Stock Exchange (Pvt) Limited, whose CEO Justin Bgoni said:

“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.

“VFEX is looking forward to a successful partnership with RBZ as it forges ahead with plans to officially launch before the end of October 2020.”

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