Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has revealed that the central bank intends to introduce electronic money worth $200 million into the real time gross settlement (RTGS) system. According to Mangudya, the money will be used to support gold miners who in turn earn foreign currency through exporting gold. Critics have in the past accused the government of printing money using the RTGS system. Said Mangudya,
So far, it’s $150 million which means upon them completing that fund, we will add another $50 million to make it $200 million. Yes, upon them exhausting the fund, then we will do that (increase the fund). We are quite happy about that position. It has also increased production of gold in this country. So basically, what we are doing is that we are leveraging on the RTGS funds to produce an exportable item called gold.
Therefore, that’s a very good way of managing the foreign currency. What we need in Zimbabwe is foreign currency. So if we can use the RTGS balances to produce an exportable, then we are doing very well.