AMHVoices: Is RBZ an extension of ZRP?

Reserve Bank of Zimbabwe governor John Mangudya and Finance minister Mthuli Ncube during the Monetary Policy Statement presentation in Harare yesterday

THE Reserve Bank of Zimbabwe has become a de facto “secret police” that watches over transactions done at banks, mobile money and even text messages in a bid to protect the local currency that has weakened by 75% to date.

By Concerned, Reader

The local unit turns one this year, but it is one of the world’s worst. The gap is too wide between official and unofficial rates. At US$1:25, it’s unattractive for foreign currency holders to offload their United States dollars.

Business is booming on the alternative market where the Zimbabwean dollar keeps losing value day-in, day-out. These threats won’t work.

Companies are bleeding right now, this so-called fixed exchange rate doesn’t make sense.

On another note, a fizzy drink can is selling for $250 at a hotel or US$1 that’s forward pricing in anticipation of the Zimbabwean dollar value loss which is almost inevitable.

The RBZ recently released a statement saying reserve money had increased by over 300% since end of last year which basically is a trigger for inflation and the tanking of our currency.

My question is, what needs to be done?