Reserve Bank Governor, Dr John Mangudya has announced that the central bank shall introduce a cocktail of measures to deal with uneven distribution of money in the economy.
He made the remarks on Monday while presenting the country’s 2020 first half Monetary Policy Statement in Harare. Mangudya said:
Focusing on liquidity management becomes critical especially the context under which around 50 per cent of this $34,5 billion is concentrated on only 200 entities, whilst the majority of the Zimbabwean population is struggling to make ends meet in an economy with a huge output gap
This framework will be operationalised through the use of open market operations tools like Treasury Bills, savings bonds, corporate bonds, statutory reserves and specific management instruments to deal with uneven distribution of money in the economy.
The governor speaks when reports have suggested that some of the few individuals and entities where the cash is concentrated on are allegedly injecting that money into the parallel market.
This has resultantly exacerbated the cash crisis at the same time putting the forex exchange rates on the loose. Due to inflation, the daily and maximum bank withdrawals have become insignificant thereby leaving the citizenry stranded and at the mercy of money changers.
More: The Herald