THE Reserve Bank of Zimbabwe (RBZ), will print an extra $400 million in bond notes and coins to cover the gap left by the withdrawal of hard currencies, Governor John Mangudya said Wednesday.<\/p>\n
On Monday, government, in a shock move, announced the multi-currency regime that had obtained for a decade would be abolished with immediate effect, designating the Zimbabwean dollar as sole legal tender for all local transactions.<\/p>\n
Mangudya was however quick to allay fears of inflation indicating the RBZ is cognisant of the consequences of unguarded printing of money.<\/p>\n
\u201cAs we move towards a cashless society, we still need about $400 million to allow people to access cash, so we are going to print that money to cover that gap left by the removal of the multi-currency system,\u201d Mandudya told a state run radio station from China.<\/p>\n
\u201cWe will not print up to levels that will cause inflation as feared by some people.\u201d<\/p>\n
Mangudya said Zimbabwe\u2019s economy requires around $1.5 billion in cash and currently has between $600-$800 million in bond notes that are not enough for use by the transacting public.<\/p>\n
\u201cCurrently, we have about $6-800 million in bond notes and coins. This economy requires about 10% of all deposits in liquidity which comes to about $1-1.5 billion.<\/p>\n
\u201cSo we will definitely bring in notes and coins in the value of around $400 million,\u201d he said.<\/p>\n
The RBZ governor also said that diaspora remittances should continue to be received in foreign currency and no bank has been instructed not to pay customers from their Nostro accounts.<\/p>\n
He also dismissed claims that the Central Bank will raid ordinary people and business foreign currency accounts.<\/p>\n
\u201cRecipients of diaspora remittances and other foreign currency payments will still withdraw in hard currencies or choose to get it in Zimbabwean dollar at an interbank rate,\u201d he said.<\/p>\n
According to a statement from the RBZ, non-governmental organisations, embassies and other foreign organisations will not be affected and can continue paying salaries in foreign currency.<\/p>\n","protected":false},"excerpt":{"rendered":"
THE Reserve Bank of Zimbabwe (RBZ), will print an extra $400 million in bond notes and coins to cover the gap left by the withdrawal of hard currencies, Governor John Mangudya said Wednesday. On Monday, government, in a shock move, announced the multi-currency regime that had obtained for a decade would be abolished with immediate […]<\/p>\n","protected":false},"author":84,"featured_media":4139,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,12],"tags":[249,83,450,653],"class_list":{"0":"post-10610","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-all-news","8":"category-policy","9":"tag-currency","10":"tag-economy","11":"tag-mangudya","12":"tag-rbz"},"yoast_head":"\n