The Confederation of Zimbabwe Industries (CZI) has called for the government to increase the number of bond notes currently in circulation as a means of countering inflation. The CZI said that inflation was being fuelled by the use of electronic money systems such as mobile money and real time gross settlement (RTGS) system.
CZI chairperson for the Economics and Banking Standing Committee Jimmy Psillos told the CZI 2018 Economic Outlook Symposium in Harare:
When fighting inflation, it is better to use physical cash which is less inflationary than RTGS. My suggestion is that the government should print more bond notes but within an overall cap.
…Let the market choose how much bond notes it wants to have. This will eliminate all these productivity-sapping queues.
NKC Research analyst Sibongiseni Nkota said:
A healthier foreign currency buffer and an easing in tight foreign currency liquidity will curtail black market trade while also strengthening the value of bond notes, gradually improving confidence in the latter.
More: Daily News