Business reacts to monetary policy

Confederation of Zimbabwe Retailers president Denford Mutashu

THE ZIMBABWE National Chamber of Commerce (ZNCC) says by introducing a separate account for foreign currency through the monetary policy statement yesterday, the central bank has finally de-dollarised the economy.


Reserve Bank of Zimbabwe governor John Mangudya announced the split of existing foreign currency accounts (FCAs) into two: an account for foreign currency transaction (nostro FCAs) and another for local bond notes and RTGS (real time gross settlement) transactions.

ZNCC chief executive officer Christopher Mugaga said the measures showed that Mangudya had finally accepted that the US dollar and the bond notes were not at par.

“It was quasi de-dollarisaion if you look at what he did. He separated nostros and RTGS,” Mugaga said.

“My question is: how is he going to operationalise the two if the rate is 1 as to 1? It’s a defacto de-dollarisation. He did it by testing the waters with one leg knowing that it might be too risky to throw them in at once,” he said.

“The advantage of what he did is that it can allow him to put effort on the RTGS, especially the issue of broad money. Remember, he is dealing with unproductive money. If you look at it, broad money supply grew by 43% year-on-year because we are creating money which does not correlate with economic growth.”

Mugaga applauded Mangudya for introducing the auctioning system for the Treasury Bills (TBs), adding this would resolve the issue of superficial bank profits.

“This will self-correct the income statements of banks. Total profit will be wiped away. The auction system will reflect the risk value of TBs because they are a risk asset,” he said.

Confederation of Zimbabwe Industries president Sifelani Jabangwe said the proposed US$500 million facility over and above other facilities would help in nostro stabilisation.

“We are just analysing it, but I think the challenge has been acknowledged. The key issue of nostro stabilisation will help us to move from the forex problem. The separation of FCA will help exporters to retain their foreign currency,” Jabangwe said.

He said the introduction of statutory reserves at a level of 5% on RTGS FCAs on a weekly basis would help reduce the amount of liquidity in circulation and bring down the exchange rate.

Confederation of Zimbabwe Retailers president Denford Mutashu also said the separation of FCA accounts would attract US dollar deposits in the economy.

“It means that everyone who has been stashing money under their pillows they can now deposit it in their bank accounts knowing that they can get it. This will create confidence in the economy. It will have a positive bearing on bank deposits,” Mutashu said.


  1. Yes, fca’s will lure forex deposits. But, hatizomuki here imwe morning, kwakunzi fca balance iyoyo is 1:1 with bond note ac balance? The doc is wise, but zim changes goal posts.

    • Confidence building with the banks will take ages to build. Our accounts were said to be US$ accounts but one afternoon its no longer that and you expect the same people to open FCA accounts and feel secure. Uuuum it seems to be a tall order.

      • You are being dishonest, you all knew already that your money which was in the bank was not at par with the USD.

    • It happened before and it will happen again. The so-called bond notes accounts used to be real US$ accounts. Vakatorahavo vagoni.

    • Political problem requires political solution,,its back to square one,, this is not a Mangudya Problem or Mthuli problem,, so neither Mthuli nor Mangudya wil bring sanity to this economy,, Even if you bring Jerome Powell, Federal Reserve president to Rbz, still he will end up behaving like Gono & Mangudya, Because u dont solve political problems with economics,,

  2. as long as its the same zanu government, you cannot trust them with your money. They are still the same thieves. by defacto, the zim dollar has returned.

  3. What is the guarantee that RBZ will not raid these FCAs like what happened before? What mechanism are in place to allay such fears?

  4. We are shockingly back to square one Gideon Gono style, just like a dog eating its own vomit. Zanupf is truly the most economically illiterate party on the planet

    • true, managing the economy by decrees, unfortunately, they cut set boda gezi on the economy…or send soldiers to shoot the economy if it does not perform as they imagine..

  5. I will never waste my money ndichisungirira mari mugumbo rengwe. Keeping it is under a pillow is better option if authorities can not be trusted

  6. What a sad waste of an opportunity gone down the drain, all that effort & loss of lives to remove Mugabe all for nothing

    • For sure, all for nothing, l feel sorry for us Zimbos, what did we do to have a party like zanu pf destroy our lives.Now that they have won, we must expect a lot of these anti-people policies.
      Ah,! sadubeka madoda.

    • Musakanganwe kuti ediot akati ma zimbo you want USD to buy matobwe??? That was when he was still VP? He had this whole charade palnned…..Ruthless bandit….Now i beleive errections were stolen by the deliv kkkkkk….. Asi dr. bonded note is the finance minister now not that barbi lunatic. porit-buro untouchabre….where the thieves are. ediot has them ring fenced LOL…

  7. haa vana mangudya havana zvavanoziva ava ne zanu yacho vanhu vepi vanofarira zvikwereti kunga mkadzi mutsva. handifunge kuti vakaenda kuchokoro for real coz tatova experiment apa tinenge tichimama nenhamo. ndo E.D. pfee yaiimbwa navanhuka iyo

  8. Why deposit my forex with a bank. Rather keep it under pillow and use it when necessary. Stupid economics, this Nthuzvi guy.

  9. Hapana akapusa anochekeresa US Dollar achiriisa muBank vakuru…. US dollar pasi pePillow Bond kunotenga US Dollar paCopacabana… iyo yemuBank toswiper mabeers wangu…

  10. ED Pfee – Soft as Wool – Zimbabwe is Open for Business! They have esentially stollen all the forex some of us had in our accounts, we will never deposit money into a zimbabwe account again!

  11. Ktsvaka uta mugate, so if we put our forex in banks we will be able to withdraw it any minute even from atms?

  12. Magudya you robbed us our US dollar in our accounts in exchange of the bond note at 1:1. Who will in his proper senses put his $ in the bank account. You end up helping vanaGire kuSingapore neforex. Its not easy to get a $ then donate it to you. Call Malaba again and see if he can help you win this. Mbavha dzevanhu God will fight you until the whole world knows that you are not the appointed people. Vafiristia vakatora Areka yaJehovah vachiti vakunda kuhondo, vakazoidzora varwariswa nayo. Zimbabwe haichatongwi nemashave nothing will work until you do the right thing

  13. I noticed one thing today, Zanu pf supporters have not posted anything. They are also clueless about the economy. They are probably celebrating that the banks will now give them two accounts unlike in the Mugabe era where they had one!!!

    • Zanoids from the helm itsvina chaiyooo. ediot anotozviziva kuti i nabhi chairo and haana kana basa nazvo. kumama chete naro nabhi iri.

  14. This is tricky for sure. so this suggests all deposits are now bond and we have all along been made to believe its USD. Now if you want to have USD you just have to open another account and make a new deposit. if you had deposited USDs in the previous account it has suddenly changed to bond notes. Hey we once complained about this issue tikati siyai henyu USD rakadaro mukati no Bond is the way to go. So sad we need better methods on the currency front. Tomira zveku robhana izvi.

  15. I’m a shareholder in Meikles. The company has been struggling, since 1998, to get all of its funds back which Government raided then. So beware, the same thing could happen again with these FCAs. History has a habit of repeating itself.

  16. We’ve been here before and lost money. Same tricks with a few new crooks. Banks took in USD deposits made lots of bucks on it, gave us back ZimBond and made off with huge profits telling us “we have no USD”. Well, most urbanites, I think do not trust this junta enough to “save” USD with them, no….even the ED pfee crew.

  17. Dear Mr John Mangudya
    Back in time ,during the Multi Currency Era,before the introduction of Bond Notes,we had forex in our accounts both personal and business.You stole our initial balances which were in forex and made us to believe that Bond is 1 to 1 with the green buck.No man is his right senses will never deposit their hard earned greens in your accounts again we have lost our faith and trust in you.
    If you want this to work please reinstate our initial balances as in US in those new FCA first then we take it from there.
    You have had morethan 11 years of experiments and Fate and destiny has it that you are not the ones chosen to fix this economy.Just step aside zvinhu izvi zvinevene vazvo

  18. kkkkkkkkkkkkk machinja ese ane rudo gadzirirai kugadzwa kwaChamisa ava ve2 cents ava kaaaa kkkkkkkk vaye vepfeeeeeeee muchati pfaaaava manzwa kupfava chaiko kusvika mati

    • We are being taken for fools,,,Zimbabweans are most clever and educated.Tobacco was bought in USD and all farmers never enjoyed that forex, fooled to believe that all the money held in our accounts was USD.Shame on you Mangudya. you are falling with a thud.. how dare you be heartless, what a bunch of thieves.

  19. The issue of nostro FCA’s and RTGS FCA’s will wipe out the black market or street market which was fuelling the rise in prices…it will also bring exporters back to the formal banking sector(not is vana tsuro with our little forex under the pillow) and encourage more exports as they now retain more of their export proceeds as well as having access through bank nostro accounts which btw will NOT be controlled or accessible to RBZ
    In addition the arbitrage that was happening with foreigners efeectively being subsidised by the RBZ/Zim fiscus is removed as they now have to use their forex to buy fuel,etc….Most of what was happening on the markets was arbitrage and speculation…
    As for ‘de-dollarisation’ the move to retain bond notes and rtgs fca means these will effectively be only useful for local transactions…in the short term this will drive up inflation as most people resort to buying goods,shares,properties rather than keep money in a ‘local currency’ account but in the long run it eases the pressure of importing forex as well as squeezing out the so called informal cross border traders who fuel the parallel forex market and smuggle goods over our borders

    I’m sure other measures will be announced soon in the budget/fiscal policy statement by Dr Ncube but otherwise a decent start…

  20. I think Mangudya & Ncube have betrayed our nation,all our bank credits have bn all of sudden devalued to speculated bond currency which won’t match USD as initially guaranteed

  21. Back to the thieving years with our very own rulers, not leaders, ZANU PF. Mungavadini, imi musina kurwa hondo? Ndiko kunonzi kutonga uku!!! Kungotora mari yemafuza asingavhoteri ZANU PF futi, tione zvavanoiita. If anyone has noticed, the tears of the weeping widowed pensioners who queue everyday for their hard-earned pensions is going to put paid to whatever fortunes this rogue regime were going to make. Yasvika nguva yekuti nguruve izvikange nemafuta ayo. Misodzi yevakuru, the pensioners who sleep on the bank queues without govt caring a hoot, haiwiri pasi. Chakadya ZANU PF chave kuda kumuka. Takaringa nzira!!!

  22. Comment…Zimbabweans are too docile. All our USD deposited in banks and invested in insurances have been stollen by Zanu Pf govt like what Gono and Mugabe did by stealing all our banked cash. I am calling all citizens to stand up to this brazen theft. Ropa ngariteuke. Kalichitheke igazi.

  23. These people are riding on the tax payer and are taking advantage of us,its like the reflections of the post election era when civilians were killed with guns for excising their rights.In Feb 2009 everyone was advised to open a US$ account and close the Zimbabwean dollar one and all the funds in Zimbabwean dollar were frozen and later converted to US$ with a dubious rate which left everyone who had his genuine money in account very poor,now the US$ account is now being converted to Bond note account to cover the failures of grid politicians who don’t want to accept reality and let the power go for the benefit of citizens who are suffering.theses guys they thing of themselves they can do anything to remain in power no matter how people are suffering.
    Lets stand and fight for our rights they cant keep on abusing us,our accounts are US$ period if they want to introduce Bond notes account fine we can open then start from there because Bond notes came after we have opened US$ ACCOUNTS,and the Bond was rated 1-1 with US$.

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