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New $100 Banknote Won't Be Inflationary - Mangudya

New $100 Banknote Won't Be Inflationary - Mangudya

Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said that the soon to be introduced new $100 banknotes will not be inflationary.

Mangudya said the higher denomination will improve convenience for the transacting public as the use of small-value denominations is not convenient anymore due to rising inflation. Said Mangudya:

It’s not going to cause inflation because we are not printing any new money.

Individuals and businesses can only access cash based only on what they have in their bank accounts.

Economic analyst Gift Mugano echoed similar sentiments adding that monetary authorities will not print new money but replace bond notes with Zimbabwe dollars. He said:

The rationale behind the introduction of the $100 banknote is based on the inflationary pressures which are eroding the value of money.

So the $100 note will be accommodative in that money should be convenient to the public.

The impact of this will be insignificant in that the authorities are not printing more money but replacing the bond notes with the Zimbabwe dollar.

However, the introduction of the $100 banknotes may be counterproductive due to behavioural issues as businesses tend to increase prices whenever a higher denomination is introduced. Said Mugano:

I would agree with the Reserve Bank Governor when he says this inflation is driven by behavioural changes.

So, as the $100 note is introduced (and) the behaviour out there in the market changes, there is a tendency of raising prices when a new note of higher denomination is introduced.

When that happens, the intention of the authorities becomes null and void.

Meanwhile, the Reserve Bank of Zimbabwe has not specified the date for the introduction of the new note.

More: The Herald


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36 Comments

Dr Hercules 1 month ago

Is nt this the same John who said he d resign if the Bond project failed KKK Project Bond/ RTGS or whatever they want to call it is a failure, the sooner John and Mthuli realise the better


mbudzi 1 month ago

mbudzi yadhura maihwe!!


rtgs 1 month ago

[4/7, HON. BITI: My question to the Hon. Minister of Finance and Economic Development, through the leader of the House is that with the cost of living rising exponentially, with the exchange rate depreciating, the parallel market rate is now close to 300, what are you doing to the plight of civil servants, teachers, nurses, doctors, judges, magistrates, bus drivers, Speaker of Parliament, Clerk of Parliament, staff at Parliament, Members of Parliament who continue to have their salaries being eroded by the rambunctious inflation and the depreciation of the Zimbabwean dollar? Why do you not just dollarise the salary of the Speaker, the Clerk, civil servants, teachers, doctors and nurses? I thank you very much Hon. Speaker Sir.

THE HON. SPEAKER: Order Hon. Member, there is no need to mention specific people. Just simply say the public, it is enough.

HON. BITI: But I was making a case for your salary too.Arent in that bracket of earning RTGS ?

Tendai Biti is something else yaakunakidza manje parliament iye😂
[4/7, BREAKING NEWS

RBZ inodhinda $100 ine****mu hwe 33cents tichienzanisa ne$1 reUSD,asi vachishandisa US50 cents kutenga bepa rekudhinda ZW100, nyika ingaendepi? Tosvika rini tichitengesa mombe kurapisa dhongi?

# REGISTER TO VOTE #

VOTE FOR CHANGE

@CCC ☝️☝️


Mbmhb 1 month ago

Mboro **** **** Mboro **** **** Mboro **** ****


MuPfungwe Chaiye 1 month ago

Ngarikwire zvekukwira zviya 2023 paseri apa


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mutant 1 month ago

enough z enough apa mapererwa Mr John


general 1 month ago

The strongest currency in the region


Ayatollah of Toxicity 1 month ago

Hapana kwatiri Kuenda senyika kana vachiri kufunga printing new notes zvinopedza inflation........Kuenda kusango chaiko


Zim 1 1 month ago

wakundikana bonga iwe ita zvemikaka zvako


tentin 1 month ago

Praise the Minister of Finance and Dr Magudya, they are pro CCC. Can't you see that they are busy throwing spanners into the engine


John Mangudya 1 month ago

leave the office boss. you have long failled. makunakirwa ne mari mega ka. Nyange mukhata R1million bond hazvibatsiri ba.


Sabhuku Vharazipi 1 month ago

hanzi we are not printing any new money saka 100 note is not new???? Mangudya ndo**** hombe chairo


tongwai 1 month ago

maybe what he means is kana mu economy mune 10000 rtgs...ma hundred arikuuya will b of that value and nt a cent more

𝙈𝙖𝙧𝙖𝙫𝙖𝙯𝙖 1 month ago

𝙐𝙨𝙚 𝙤𝙛 𝙧𝙩𝙜𝙨 𝙙𝙤𝙡𝙡𝙖𝙧𝙨 𝙞𝙨 𝙣𝙤𝙬 𝙞𝙙𝙚𝙖𝙡 𝙩𝙝𝙖𝙣 𝙠𝙪𝙩𝙖𝙠𝙪𝙧𝙖 𝙖 𝙗𝙪𝙣𝙘𝙝 𝙤𝙛 𝙫𝙖𝙡𝙪𝙚𝙡𝙚𝙨𝙨 𝙥𝙖𝙥𝙚𝙧𝙨. 𝙆𝙤 𝙖𝙠𝙖𝙢𝙗𝙤𝙩𝙞 𝙢𝙖𝙉𝙙𝙖𝙪 𝙤𝙜𝙖 𝙣𝙙𝙤 𝙖𝙣𝙤𝙜𝙤𝙣𝙖 𝙠𝙪𝙢𝙖𝙣𝙖𝙜𝙚𝙧 𝙍𝘽𝙕 𝙣𝙙𝙞𝙖𝙣𝙞?


Machiavelli 1 month ago

Kombo Moyana was a Ndau, very professional and infinitely better than GG. This sitting Ndau is a different animal altogether, not in the same mould as Kombo. John Mangundla is kith and kin (in terms of performance) with Gideon

So let's not tribalise performance.

Armed Robbery 1 month ago

Biti akataura tichisvika June $1 rine ra 500 bond....foreal we're going there


marara 1 month ago

ndokusaka muchiona vachiita kuti kandira chingwa pa rally sembwa. ivo havana nzara sesu. chaora chinhu ichi


Bhiza 1 month ago

ehe mur****wo futi nemi munoenda kurally kwavo mokandirwa chingwa sembwa
regerai humbwa ihwohwo

Da Truth 1 month ago

Let's keep on moving ma elections 2023.Varume hapana nyaya 😁 see mmega.Vanoziva here kuti kwava nema economist mangani muno .Vamwe Vava me 24yrs vaka graduate Kare asi Havana kerku shandira chete .kkkkkk vanhu vadzidza Kare taiziva vana Eric Block chete tawanda ikozvino saka stop telling matoto Ayo.


Ex 1 month ago

Zanu Pf Irikuuraya nyika vakomana amusi kuziona.......until when vechingo introducer zvima paper zvavo izvi?


change money 1 month ago

ngaiuye tiipedzere. behavior yedu ndomunoda kutaura yenyu yekuba yataurwa nani


John 1 month ago

Chii chamakambotaura chirichokwani vakuru except your name in a queue for sadza


Roy boy 1 month ago

That new note will not even buy a half loaf 🍞 bread Kkkkkkkk


Mangudya 1 month ago

100bond highest denomination currency does not buy even a 300 ml bottle of drink wht a failure of the so called NEW DISPENSATION


yoo 1 month ago

error after error !! keep on adding fuel burning bond don't let the fire to get down


🤦🤦 1 month ago

Hanziiko apa Na Mutape
nhayi Mutape Mu Supermarket menyu imi $1- zw 300
😁😁😁😁😁


Anonymous 1 month ago

I once heard former govenor Dr Gedion Gono vachipa speech vachit dont critisize the governor and RBZ, fighting inflation involves a lot of pple other than them. It takes two to Tango and a lot of pple to turn around inflation. The problem is that the citizens are doing nothing to fight inflation, they are busy counting the zeros. Do something munyika yokwako. Nyika inovakwa nevene vayo


HAVATERERE 1 month ago

Vagara vachiudzwa wani zvekuita asi havaterere vanhu,ivo gavhuna venyu ava vakatombounganidza vanhu gore riya wani vakudzwa zvekuita but Havana kuterera zvakabva zvadhakwa.Ini I suggest lets dollarise,then bond yongoita yemadomasi nezvimwewo,zvidiki zvinogadzirwa munyika muno zvisingadi maraw materials anobva kunze.Macompany anodeposita bond owanawo kainsentive Nekubatsirwa pakuvandudza mabasa avo kuti maybe one day they may produce zvakawanda then we export.

MuPfungwe Chaiye 1 month ago

@Sabhuku Vharazipi ichi ndochokwadi chema chokwadi ese tinofirei tega ngatifei tese.

Bhiza 1 month ago

Iwe nyarara nyika haivakwe nemabond ne RTGS wanzwa that foolish money don't work at all
look out highest denomination in our currency is equivalent to 45 cents
musango sekerera nema**** Ari kuitwa neHarahwa idzi

Sabhuku Vharazipi 1 month ago

isu ndisu vekuvaka vamwe vakabata sando vachipaza mudhuri manje, munhu wese sando muruoko kana yanguva yekuvaka tozovaka tese

Vybz kartel 1 month ago

U r very correct

Chiurai 1 month ago

You right pakutodiwa coin re 150 bond. 50c and highest banknote iri equivalent to 50 us do the maths

Alternatively just make color notes these numbers will still come to several zeroes


Gogodera 1 month ago

Nhamo taiona muzim

Cable Guy 1 month ago

2007 here we come. So so sad eishhh my beloved country.

Never 1 month ago

Makamboti bond note rakafoira modiya basa. Mukuda humbowo Hwakait sei kuti muone kuti makundika vaMandya



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