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Martin Kadzere
Zimbabwe will issue new notes and coins within the next two weeks as it seeks to ease cash crunch, Reserve Bank of Zimbabwe governor Dr John Mangudya has said.
Addressing journalists this afternoon on resolutions the Monetary Policy Committee (MPC) came up with following its inaugural meeting, Dr Mangudya said the new money will consists of $2 dollar coins and $5 dollar notes to be interchangeably used at par with bond coins and notes. Cash withdrawal limits will also be raised.
The injection is however, not expected to be inflationary as it will be done through non-inflationary exchange rate of the RTGS money for physical cash. “When you are substituting your cash for plastic money, you don’t increase inflation, but what it does, it will help the population…to the extent that people are going to use their money without being charged premiums,” said Dr Mangudya.
Zimbabwe has been facing chronic cash shortages over the past few years despite introducing bond notes in 2016 to supplement the U.S dollars, a dominant currency under multi-currency regime adopted in 2009, also known as dollarisation.
Online Reporter