Removing Bond Notes Not The Solution, RTGS Balances Are The Problem- Mangudya

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya yesterday said removing bond notes will not solve problems facing the economy.

Addressing delegates attending the 2019 pre-budget seminar in Bulawayo, Mangudya said the problem is $10 billion electronic balances at banks, which are not backed by real money. Said Mangudya:

In that amount only 4,5 percent are coins and notes, which is your bond notes and coins… therefore, if we remove them they won’t resolve the problem. The problem is about the 95,5 percent held as RTGS balances in your accounts. Where is it coming from? So, the question which we should be asking ourselves is where is this money coming from? That’s why we need to plug the holes not from the medium of exchange that you have taken away from the bank. The money in your account didn’t come from bond notes, not at all.

Also Read:

• I Will Not Resign, Bond Notes Have Been Successful As An Export Incentive: Mangudya

• RBZ Responsible For Economic Crisis, They Printed Bond Notes Worth Over 1 Billion – Zanu-PF Official

More: Chronicle