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Zimbabwe Hikes Overnight Lending Rate to 50% After Ending Dollarisation

FILE: Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya speaks during the launch of the Sub-Saharan Africa Economic Outlook in Harare, Zimbabwe, Oct. 30,2017.

HARARE (Reuters) - Zimbabwe’s central bank said on Monday it had raised its overnight lending rate to 50% from 15% to support the local currency, after the government banned the use of foreign currencies as legal tender.

The central bank also said in a statement that it had put in place letters of credit to secure key imports for goods like fuel and wheat, and that it would take steps to increase the supply of foreign currency on the interbank forex market. (Reporting by Nelson Banya, Writing by Alexander Winning, Editing by William Maclean)