News:Mangudya Expected To Address The Issue Of Bond Notes As He Delivers Monetary Policy Statement Today

<vote /> Reserve Bank of Zimbabwe governor Dr John Mangudya is expected to deliver the Monetary Policy Statement today. Dr Mangudya’s policy comes just after Government shot down proposals by Minister Patrick Chinamasa to reduce the civil service wage bill through a staff rationalisation, bonus suspension and pay and allowances cut.

Given that Cabinet shot down proposals by Chinamasa to reduce the civil service wage bill, Mangudya will need to announce how the central bank will raise funding for Government to boost and sustain its operations.

Government has been operating a budget deficit with the position expected to widen to $1 billion by year end from $623,2 million in the six months to June. To finance the deficit, Government has turned to the RBZ to issue Treasury Bills with around $726,1 million having been issued by the end of June. The central bank is yet to officially issue a statement on the amount of TBs that are in the market but estimates put the amount around $2 billion.

Mangudya is also expected to speak on the bond notes.

Read More: The Herald