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,

More: Sunday Mail

 

Bond NotesJohn MangudyaReserve Bank of Zimbabwe

Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes

John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya

The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe

WhatsApp Discussions

Click to subscribe to a Pindula WhatsApp Group:
https://chat.whatsapp.com/7qEiZs3oW93F5FH2EUGWmx

If you find the group full, please notify us on +263 777 707 852 and we'll update the link.

Daily Email Brief

Get the top news delivered to your inbox every day.

Leave a Reply

Your email address will not be published.