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* Aim is for central bank to once again influence interestrates
* Zimbabwe ditched its own currency in 2009 due tohyperinflation
* Money market rates chaotic since then
By MacDonald Dzirutwe
HARARE, March 22 (Reuters) - The African Export-Import Bank(Afrexim) on Saturday gave Zimbabwe a $100 million loan to allowits central bank to set up an inter-bank market for the firsttime in five years, which would allow the apex bank to influenceinterest rates.
The southern African state abandoned its own money in 2009after hyperinflation rendered it worthless, and adopted foreigncurrencies such as the U.S. dollar and South Africa's rand whichleft the central bank unable to influence rates.
Money market rates have spiralled out of control as aresult, with bank deposits attracting returns as low as 0.15percent while borrowing costs are quoted as high as 35 percent -a prohibitive rate for farmers and manufacturers.
The central bank will use the $100 million to re-introducean inter-bank market - where local banks can borrow from otherswith surpluses - and set an overnight accommodation interestrate, which would act as the benchmark for market rates.
Finance Minister Patrick Chinamasa said the fund was part ofmeasures to improve liquidity in an economy facing decliningexport earnings and companies that are struggling to survive.
"This will at the very least unlock surplus funds fromsurplus banks for those in deficit," Chinamasa told a pressconference.
Local banks would use Afrexim Bank-backed securities andgovernment treasury bills as collateral when borrowing from eachother. Treasury Bills will be issued from Monday, Chinamasasaid.
The central bank published an interest rate range guide forthe money market in January and proposed indicative yields ofbetween 6.6 percent and 8 percent for short term debt.
The government has taken over the central bank's $1.35billion debt and is seeking up to $200 million to capitalise thebank.
Britain's Standard Chartered and Barclays Plc and South Africa's Standard Bank and Nedbank are the major foreign banks with operations inZimbabwe. (Editing by Raissa Kasolowsky)
