Bankers urge Ministry of Finance to recapitalise RBZ

BANKERS have called on the Ministry of Finance to recapitalise the Reserve Bank of Zimbabwe (RBZ) to enable it to execute its mandate effectively.


Charity Jinya, the Bankers’ Association of Zimbabwe (BAZ) president, appeared before the Parliamentary Portfolio Committee on Finance on Monday where she called on MPs to lobby government to ensure that the central bank was capacitated to ensure that it supported the credit guarantee scheme.

She appeared together with organisations like the Confederation of Zimbabwe Industries, Zimbabwe National Chamber of Commerce (ZNCC) and Chamber of Mines to speak on the 2017 monetary policy statement.

“When we suggested the issue (recapitilisation) to the central bank, they indicated that in their opinion they were properly capitalised, but we do not think so as BAZ,” she said.

BAZ also said the Banking Amendment Act needed to be reviewed with regard to non-voting powers of executive directors of banks and their terms of office.

“This issue was not fully addressed in the monetary policy statement and needs to be taken up with the Ministry of Finance,” Jinya said.

BAZ also suggested the central bank must revisit its auction system of Treasury Bills and allocation of foreign currency to ensure transparency in the processes.

“The issue was not covered in the monetary policy statement and we believe the market should be transparent on the issuance of Treasury Bills and their quantum. The foreign currency management committee has also not been set up and we were told this awaits the promulgation of the Reserve Bank of Zimbabwe Act.”

Brains Muchemwa of the ZNCC said the RBZ must ensure foreign currency was available to business, including small-scale operators.

ZNCC president Davison Norupiri said small and medium enterprises resisting fiscalised point-of-sale machines were doing so deliberately and not out of ignorance.

Chamber of Mines economist Pardon Chitsuro said they would continue to appeal to the RBZ to prioritise the mining industry in terms of foreign currency, as well as that there must be a downward review in bank lending rates to support the mining sector.

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