Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has claimed that there is no liquidity crisis in Zimbabwe. Mangudya insisted that there was ample electronic money available through the Real Time Gross Settlement (RTGS) system, which he said was the true measure of a functioning economy. Speaking at the handover of the RBZ support facility to the Zimbabwe Tourism Authority (ZTA) Mangudya said:
We have too much money in this country in the form of RTGs, that is what measures liquidity. Do not measure liquidity by the money you withdraw from the banks, that is cash withdrawals.
Liquidity is money in the bank that is idle and can be used at any time, that money is there and that is money we want to use to produce goods.
Let us use the RTGs in the banks to produce goods thereby earning more exports which in turn bring more the much needed foreign currency, which we already use, but we need more.The backbone of any economy in the world is money and the money comes from production.
This is what we use when we measure our GDP (Gross Domestic Product), we ask ourselves what have we produced as a country.
Mangudya previously claimed that there is no cash crisis in Zimbabwe, choosing instead to blame the Zimbabwean population for financial indiscipline. In August last year, Mangudya threatened not to release more bond notes onto the market, until Zimbabweans developed fiscal discipline. He blamed cash hoarding and externalisation for the cash shortages. Said Mangudya then
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.
Later on, Mangudya reportedly backtracked on his pledge that he would resign if bond notes did not work. Instead, the governor blamed fiscal indiscipline, within the government for the cash shortages.
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