‘RBZ should invest in trust again’

THE Reserve Bank of Zimbabwe (RBZ) should invest more in methodologies that will enable people to regain trust of the apex bank, following its quasi-fiscal policies in 2008, which resulted in hyperinflation, a researcher has said.

BY MTHANDAZO NYONI

Giving remarks at a Bond Notes Lecture Series at the National University of Science and Technology (Nust) in Bulawayo on Monday, keynote speaker, Nqobizitha Dube said that the people had lost confidence in the central bank.

As such, he said, the apex bank should reform itself.

“We don’t trust the system. You have to invest in methodologies that will make us trust you. The social contract is seriously broken,” he said.

Dube, a lecturer at Nust, said people were sceptical of bond notes because the RBZ was associated with corruption and lack of integrity.

“There are allegations of cases of corruption, which have been taking place. There are allegations of economic mismanagement and there are other allegations that people have not been happy with,” he said.

Dube said people were still stuck in the 2008 era, which saw them losing all their savings after the central bank, under then governor, Gideon Gono, went on a bearer cheque printing spree, triggering hyperinflation.

“It is, therefore, critical for the messenger (RBZ) to understand that the people still remember what happened,” he said.

Dube said the RBZ could have hired the International Monetary Fund or any other reputable institution to spread the bond notes message to the public. As such, the introduction of the bond notes has stoked fears of a return of hyperinflation similar to 2008.

Dube also said there was lack of clarity on the credit facility.

“I think there was need for African Export Import Bank [Afreximbank] to come out in the open about the facility,” he said.

The bond note, which is valued at 1:1 against the US dollar, started circulating in the market on Monday.
It is said to be backed by a $200 million Afreximbank loan facility.

The public lecture was held in conjunction with Alpha Media Holdings, Nust and RBZ.

AMH are publishers of NewsDay, The Standard and the Zimbabwe Independent.

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1 Comment

  1. RBZ policies will forever disadvantage the mass! Current maximum withdrawal from banks is pegged at $50-00 due to cash shortages. But its the employee who is at the receiving as banks are charging $2.55 per each withdrawal! consider someone getting a net salary of $430.00; s/he need to make 8 withdrawal thus giving the bank a cool $2.55 * 8 = $20.40 outside the monthly service charge. The problem we have in Zimbabwe is the appointment of RBZ Governors interests in the banking sector thereby disadvantage the generality of of the mass. Banks are happy with the current arrangements as their are the one who are benefiting. I WONDER WHETHER THERE ARE AN BUSINESS ETHICS IN THE BANK SECTOR.

    Serious action need to be taken now to prevent further extortion of the mass!
    ALLUTA CONTINUA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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