The Reserve Bank of Zimbabwe said it will establish an interbank foreign exchange market, as the government effectively created a new currency and allowed it to float.

The new interbank forex market will be created with immediate effect, the RBZ statement said. The move is the RBZ’s latest attempt to stem the country’s currency crisis. But observers warned the new move could have a “disastrous” impact and deepen Zimbabwe’s economic crisis.

“[The market will] formalise the trading of RTGS [real