Cash Barons Will Soon Be Making Losses, We Are Flooding Market With Foreign Currency: Mangudya

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has warned illegal foreign currency dealers that they will be counting their losses soon, as the central bank is going to flood the market with foreign currency. This comes after the United States dollar is reported to have reached the 2:1 mark against the bond note when using electronic transfers. Speaking to NewsDay, Mangudya

The Reserve Bank has injected more cash into the banking sector, therefore, those people who are selling cash at 100% would soon count their losses. If they are being encouraged by politicking, they are going to lose money. This week alone (last week) we have injected $25 million and next week (this week) we are putting $30 million, so this month we are saying we have increased it from $100 million to $150 million, therefore there is no logic for prices to go up when there is more money in the economy.

….We have cash at the banks. Right now, as we speak, my staff has been discharging funds, giving cash to the banks. So those ones who are selling at those high rates are going to lose money. They are going to fail to find money because there are no fundamentals to warrant the parallel rates to go to 100%.

Mangudya seems to have made a u-turn as only a few weeks ago he was saying that the central bank was going to stop allocating United States Dollars for withdrawal by individuals.

Also read, No More US Dollars For Withdrawal By Individuals: RBZ

More: NewsDay

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