Mop up drains $9bn out of market…but high policy rate may stifle lending, cautions FCB

AN aggressive mop up operation being pursued by the Reserve Bank of Zimbabwe (RBZ) has sucked $9 billion out of the market, First Capital Bank (FCB) said on Friday, as its third quarter financial statements showed revenues rocketed by 82%.

Mop up operations are deployed to control liquidity and keep inflation in check.

RBZ’s strategy has been credited for bringing inflation down and stabilising a currency that saw 70% of its value wiped out during the review period.

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