The Zimbabwe National Chamber of Commerce (ZNCC) has said that Monday’s mid-term monetary policy statement showed that Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has finally accepted that the bond note is not equal to the United States dollar and had de-dollarised the economy. Mangudya ordered banks to separate Nostro Foreign Currency Accounts from RTGS deposits within the next two weeks. Mangudya said that this was necessary to preserve value for those exporting or bringing in foreign currency into the country.
Commenting on the monetary policy, ZNCC chief executive officer Christopher Mugaga said,
It was quasi de-dollarisation if you look at what he did. He separated nostros and RTGS. My question is: how is he going to operationalise the two if the rate is 1 as to 1? It’s a defacto de-dollarisation. He did it by testing the waters with one leg knowing that it might be too risky to throw them in at once.
The advantage of what he did is that it can allow him to put effort on the RTGS, especially the issue of broad money. Remember, he is dealing with unproductive money. If you look at it, broad money supply grew by 43% year-on-year because we are creating money which does not correlate with economic growth.