© RESERVE Bank of Zimbabwe (RBZ) governor John Mangudya has been tasked by President Emmerson Mnangagwa to inject more money into the market following unending cash woes that have resulted in long bank queues.
In a bid to lessen the cash shortages, the government had in recent weeks injected $110 million in notes and coins into the market, but this failed to stem the severe cash shortages. Desperate Zimbabweans have been besieging over stretched banks trying to withdraw their money for the holidays.
Speaking at the International Anti-Corruption Day commemoration symposium last week, Mnangagwa said: “I saw that there are long queues in banks and I asked the (RBZ) governor to increase the money supply. I told him that I had watched on television many people queuing, including mothers sitting on pavements, for cash.
“He told me that in the past we were inject- ing $10 million to $14 million daily, but we are now injecting $30 million. So now you will not see queues because we have added more money. We will be monitoring this and if there is need to increase the money supply we will do that.
“The issue of rejecting coins is just a matter of perception. But what I can say is that we are not going back to the US dollar; we will continue us- ing our money and people need to get used to the coins.”
Meanwhile, despite authorities injecting more notes and coins into the market, long queues con- tinued as the country enters the Christmas holiday.
During this time, demand for money shoots up as various transactions require hard cash. Without cash most people will face a three-tier pricing system with market players pegging their prices in US$, Zimdollar and the Real Time Gross Settlement (RTGS), in line with rates obtaining on the black market.
At the same time, plastic money, which has become the alternative payment system, is now they said it indicators
The issue of rejecting coins is just a matter of perception. But what I can say is that we are not going back to the US dollar; we will continue using our money and people need to get used to the coins.”