Mangudya: New Notes Won't Cause Inflation

Reserve Bank of Zimbabwe governor John Mangudya said that banks will this weekend begin exchanging their RTGS balances for physical cash ahead of the release of new notes on Monday.

The release of new notes will not be inflationary as the Central Bank will substituting existing electronic money with physical cash. Said Mangudya:

We will make sure that we drip-feed the physical cash into the market in order to ensure that there is sufficient cash in the economy.

… The fears that people are expressing on social media are a legacy of the hyperinflation era, but we assure them that there will be no repeat of that because there will be no increase in money supply; there is absolutely nothing to fear.

Mangudya also disclosed that the RBZ Monetary Policy Committee (MPC) will meet on Friday to evaluate the market’s reaction to the new notes and will prescribe appropriate interventions if there is a need for that.

More: The Sunday Mail