The Reserve Bank of Zimbabwe governor, John Mangudya has released a statement reassuring the nation that there is no need to panic buy as the bank has a US$500 million line of credit. The central bank said that it has already released US$40 million for the purchase of fuel and blamed unscrupulous foreign currency traders for the spike in parallel market rates and prices of commodities. We publish the statement in full below:
DRAWDOWN OF FOREIGN CURRENCY FROM US$500 MILLION LINES OF CREDIT FOR PROCUREMENT OF ESSENTIAL COMMODITIES
The Reserve Bank of Zimbabwe (the “Bank”) wishes to advise members of the public that it has started drawing down foreign currency from the US$500 million lines of credit advised in the Monetary Policy Statement issued by the Bank la. week. As advised, the purpose of the facilities is to fund the procurement of essential commodities including fuel, electricity, wheat and raw materials for the manufacturing of cooking oil and packaging.
The Bank released US$40 million for the procurement of fuel on Friday, the 5th of October, 2018 and the fuel is currently being supplied and delivered to the various filling stations and supply points across the market. The Bank is grateful to the National Oil Company of Zimbabwe for working round the clock to ensure that the fuel is delivered to the oil marketing companies across the country.
In view of these positive developments, the Bank would like to assure the public that there is sufficient fuel available in the country and therefore there is no need for panic-buying of fuel and other essential commodities.
The Bank has noted that increase of prices of certain goods has followed the spike in foreign currency parallel market rates which is being caused by some people bent to dupe the public of their hard earned income. The opportunists are manipulating foreign currency parallel market rates to cause unnecessary panic and despondency and destabilisation of the economy. Such counterproductive behaviour is unwarranted and should be condemned by all peace-loving Zimbabweans.
The Bank would also like to reassure the public of that the multi-currency system will remain in use and the Bank shall continue to secure lines of credit to supplement the country, foreign currency earnings from exports and diaspora remittances in order to support the entire economy.