No amount of political pressure will force the Reserve Bank of Zimbabwe into printing bond notes above the US$200 million threshold it has set, RBZ chief Dr John Mangudya has said.Some sceptics fear that some politicians could try to arm twist the central bank to print more notes, resulting in inflationary turmoil. Dr Mangudya, however, allayed those such fears, saying money was not printed for political expediency.
At a recent awareness event in Harare, Dr Mangudya said,
People don’t know how money is printed; I know there is a lack of trust and fear among ourselves. Money is not printed because the President says Mangudya come and print money. That one (likelihood of printing more money) hurts me and it is not right. It is not true. I think that is an insult to the Office of the President and Cabinet and … ministers because that is not the way money is printed; that is not the way a reserve bank operates.
Zimbabwe is battling United States dollar cash shortages, with most depositors queuing for hours only to withdraw between US$50 and US$100 from banks. The situation has been attributed to externalisation, a huge trade deficit, lack of a savings culture and increasing pressure on the US dollar from within and outside Zimbabwe. Authorities argue that by introducing bond notes as both an export incentive and they will ease pressure on US dollar transactions.
More: Sunday Mail