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RBZ Moves To Control Money Supply To Stabilise The Exchange Rate

RBZ Moves To Control Money Supply To Stabilise The Exchange Rate

The government has made fresh moves to control the money supply and stabilise the exchange rate, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said yesterday.

He was speaking at a webinar hosted by the Zimbabwe Independent in partnership with the Bankers Association of Zimbabwe to unpack the monetary policy statement released last week.

Mangudya said the money it has been supplying to businesses, contractors and farmers has been abused. He said a committee comprising the RBZ and Finance ministry resolved to close taps to control liquidity. Mangudya said:

Over the past two weeks, the government’s release of funds to the market was so limited to the extent that the parallel market did not move.

There has been a shortage of local currency on the market and that is the reason the parallel market has been stable for the past two weeks, the closed tap other than for salaries, did not see a lot of money coming onto the market.

He said inflation was a monetary phenomenon related to the rate of circulation of money and the central bank was closely monitoring the two. Mangudya added:

The parallel market rates are key drivers of the exchange rate, but the key drivers of these rates is not even the government, its business. Unfortunately, what we have noticed is that most of the money that businesses get is coming from the government so the government has got projects like road construction, dam construction and they are paying to the farmers.

Mangudya said recipients of money from the government should be disciplined.

More: NewsDay Zimbabwe

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Tk 5 months ago

Ibvai apa chii chamogona zvinhu zvichingokwira dairly

Jah🇿🇼Tsvarie-07 5 months ago

All we need as workers is stability so that it make sense going to work, I also think it takes time for RBZ to act such that we end up thinking you play a part in those things that you say are the cause of inflation...

Clayton mhlanga 5 months ago

Is infation solely the result of the excessive supply of money in the marke? I think we are being financially suffocated which has a bearing on our ability to access goods and services to help improve our ordinary lives as citizens. I think that the authorities need to employ a holistic approach to the issue of inflation or else you might be presiding over minority elitist economy whilst the majority are wallowing in abject poverty.

Doug 5 months ago

There is too much politics in our economics for us to function as other modern economies. Most, if not all economics decisions made have a political consideration. We need to have seasons for things to work, but we seem to have a perpetual political season eclipsing every other thing in our lives.

Kaguvi naCharwe 5 months ago

Mangudya is a confused man, all his tactics are fruitless, imagine 2ltre cooking oil costing rtgs814 , saka zvakanzerwa nemari yawanda kunani? These guys are getting usd nelowest rate kuforeign exchange market kwavo uko vouya kumashop avo vorater ma210-40

Francis Mhike Mutema 5 months ago

Itai tione vakomana.musanyaudzwa nevema Principles of Economics ava

JANDU 5 months ago

Crazy Magudya


tongwai muchamuka 5 months ago

toitaseiko neino nyika?

Tkt 5 months ago

Yaa ZUPCO yanga yagarisa isinga kwidze maFARES, takuto ziva kuti ndico vamwe vano kwidzisa maRate nemari dzavari kubhadhara macontractors avo then mmm ma1 imagine kuti panobuda maRTGS ezvima bhazi zvese zvino famba mumigwagwa mati,yacho yese must not last a day or two, inenge icjo endepi?

but any way vaMangudya very soon will be implementing what i said last week
-delaying all mobile money transactions to individual Accounts by over 6HRS kuti vaone anoshinga kusiira Sphatheleni,mari yake ozopuwa US later yapinda kana,kuti,pana change money achabvuma hr kupa munhu transfere yacho isati yapinda, HAMENO

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