RBZ says it will stop issuing new bond notes until people develop discipline

6 years agoSun, 23 Apr 2017 08:11:19 GMT
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RBZ says it will stop issuing new bond notes until people develop discipline

Reserve Bank of Zimbabwe governor John Mangudya has said that central bank is going to hold off on issuing new bond notes until the people have developed fiscal discipline. Despite the continuing cash shortages, Mangudya believes that the money already in circulation is sufficient for local transactions. According to Mangudya, the money in circulation stands at US$900 million and 130 million worth of bond notes. He blamed the cash shortages on cash hoarding and externalisation.

Said Mangudya:

As for now, we have decided not to continue issuing out new bond notes into the market as we have enough for transactional processes … We shall when people have fiscal discipline with the money that is available.

Since last year March, we have suffered due to some detractors who have bad intentions of hoarding and externalising cash in a bid to destabilise our recovery framework , but we won’t fold hands to leave them to do as they will.

To deal with such bad characters, we have brought into play (the) Bank Use Promotion Act to ensure and encourage people like traders, wholesalers and other dealers to bank their money. And from this legal instrument, we have taken to court over six firms since the start of the year and we shall continue doing that until the people have discipline,

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More: Sunday Mail




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