Chronicle Editor
Oliver Kazunga, Senior Business Reporter
RESERVE Bank of Zimbabwe (RBZ) Governor Dr John Mangudya says transactions worth $27.4 billion were made through the Real Time Gross Settlement (RTGS) system in the first six months of this year.
In the context of cash shortages the economy has been experiencing since April last year, the central bank has encouraged the public to make use of plastic money and other payment methods.
In his mid-term monetary policy statement yesterday, Dr Mangudya said the value of transactions settled through the Real Time Gross Settlement (RTGS) accounted for just above 70 percent of total transactions in the economy.
“Transactions handled through the RTGS continued to grow. A cumulative total of 2.5 million transactions valued at $27.4 billion were settled through the RTGS system from January 3 to June 30, 2017 accounting for just above 70 percent of total transactions in the economy,” he said.
Authorities blame the cash crisis on externalisation of foreign currency, hoarding of cash as well as other illicit dealings. Dr Mangudya also said the apex bank, in line with the current foreign exchange management framework, has facilitated $2.1 billion payments for various foreign payments through banks.
“The balance of $887 million (30 percent) was received and administered by the Reserve Bank through the Foreign Exchange Management System,” said Dr Mangudya.
He said the monetary authorities would continue to work on ensuring consistency with the need to efficiently allocate and utilise foreign currency in a manner that enhances productivity within the economy.
The Governor noted that the efficient allocation and utilisation of foreign currency was aimed at enhancing competitiveness and boosting exports. As such he said the need to increase exports requires that Zimbabwe continuously develops strategies to support exporting entities.
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