RBZ increases cash injections to $150m

RESERVE Bank of Zimbabwe governor John Mangudya says the central bank has increased the foreign currency injections into the economy by 50% to $150 million a month to ease forex shortages.

BY TATIRA ZWINOIRA

This came amid reports that the exchange rate for the US dollar had hit the 100% mark on the parallel market.

Mangudya told NewsDay Business on Friday that the cash barons fuelling the parallel market would soon find themselves out of business as the central bank had moved to flood the market with foreign currency.

“The Reserve Bank has injected more cash into the banking sector, therefore, those people who are selling cash at 100% would soon count their losses. If they are being encouraged by politicking, they are going to lose money. This week alone (last week) we have injected $25 million and next week (this week) we are putting $30 million, so this month we are saying we have increased it from $100 million to $150 million, therefore there is no logic for prices to go up when there is more money in the economy,” he said.

“Bond notes in the market right now is about $390 million… Whenever we release money like what we are doing, some of the money remains in the banks and some of the money is captured by people in circulation. So when we talk about money, do not look at the money at the banks only, talk about the money in the economy — that is more important. Not money in the vault (bank vaults).

“In this economy, there is more than $2,5 billion in circulation, cash, then you now add money at the banks which is about $500 million. Bond, as I said is $390 million, but if you go to the banks they will tell you they have got $20 million with them which means the money is in the market which is why people then sell money,” Mangudya said.

He said the parallel market was a cash baron-driven business who send their dealers to the streets as they were taking advantage of politicians.

This comes as the bank queues still persist with depositors failing to get cash, creating demand for the greenback.
“We have cash at the banks. Right now, as we speak, my staff has been discharging funds, giving cash to the banks. So those ones who are selling at those high rates are going to lose money. They are going to fail to find money because there are no fundamentals to warrant the parallel rates to go to 100%,” he said.

This shows banks are deliberately holding onto cash. Bankers Association of Zimbabwe vice-president Benefit Washaya recently hinted that they were considering not disbursing cash to depositors.

11 Comments

  1. This will not help the situation since the banks are not handling cash. Its forex being flushed onto the black market for the benefit of those sponsoring the notorious money changers. NOTHING WILL CHANGE.

    1. GONO–ISM IS ABOUT THERE THERE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

      1. & how much did you put into your own bank ???????????????????????????????????????????????
        CROOKS ALL AROUND ZIM
        ADOPT THE CONSTITUTION

        I LIVE IN AUSTRALIA

  2. Wezhira Wezhara

    The problem is that banks are not giving customers cash in forex. Instead, bank employees are taking the forex to the black market and then return the equivalent to the bank which they offer customers in bond notes. That leaves them with the black market profit. It is high time banks are urged to create internal bank supervision teams to curb this rot because black market yemari haingamboperi.

  3. wezhira uri dofo rakadzidza inopera industry ikavhurwa haisi kuvhurwa nekuda kwemhuka inonzi zanu pf ndiyo source yedambudiko rese

  4. VaMangunya makati bond rikaramba or kushaya simba imi muno resign asi apa zvavapapi muchingoripo kuratidza kuti muri kufara nazvo kutambura kwavanhu from 2009 to 2013 tanga tati nyika yakudzoka panoti Zimbabwe zvino economics dzamakaita dzeu mbavha idzi tarirai muone kwazvasvika.As long bond still on circular hapana hapana why tikaenda pama money changers vanenge vane clean new notes isu rudhende zvanzi ma 5c and 10c coins apa Mangunya uri kuti mari hobho ko why upto now hapana watakaoma kunzi asungwa saka isu tongoti newe urimo mu game imomo ndiwe uri kupa vanhu avo mari kuti vatiponde even ku eco$ 35% cash out vakaoma

  5. Last weeek you were saying banks should stop issuing the USD to the public, today its another story, shame on you Mangundya

  6. that is total rubbish? they must stop talking nonsense RBZ has failed us together with Zanu Pf. Lets meet at the Ballot

  7. tinei ganyani

    sometimes kana usina comment yekupa just keep quite because tinonzwisisa mamiriro akaita upfumi right ne economic warfare. VaMnangagwa varikuedza kuita ma reforms anogadzirisa nyika but nenyaya yema elctions ari pamukova its difficult kuti ma investors auye saka regai tiende kubalot tinovhotera ED timboona kuti haana chaangatiitirawo here semutungamiriri

  8. As long as we are using bond notes it will never work we need a currencey of our own that can work in Zimbabwe and abroad you cannot do that with bond notes because they work only in Zimbabwe and if you google Zimbabwe dollar to US dollar exchange rate you will be shocked to find the rate at 1USD:350ZWD while local black market is lower at 1USD:1.40ZWD

  9. HAKI HE WATU NA CAUSA HAPANA IKO HAKILI UTER KIDOGO

    I LIVE IN AUSTRALIA

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