Cash shortages to end soon | RBZ

By Portia Sigauke

The Reserve Bank of Zimbabwe governor Dr John Mangudya says the cash crisis is expected to end this week after the Central Bank had imported $15 billion to boost money supply.

Dr Mangudya said this while appearing before the parliamentary finance committee to clarify policy measures that the RBZ had employed in a bid to ease cash shortages that Zimbabwe is currently experiencing.

Mangudya said the move to introduce bond notes was meant to boost exports not easing cash shortages.

He said while the purpose of coins was to provide change, bond notes would be used to pay the five percent export incentive to boost production.

The facility is leveraged by a $200 million loan from the African Export and Import Bank.

Legislators, however, said the constituents were confused about the introduction of the bond notes and wanted to know how they would work.

Mangudya said people should not panic as the introduction of bond notes was to curb externalization of money not replacing the US dollar.

Zimbabweans are facing serious cash problems as banks are limiting withdrawals to $50 per person a day.

 

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