Mangudya Presents Maiden RBZ Monetary Policy

Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya has announced new measures aimed at reviving productive sectors of the economy.

In his maiden Monetary Policy statement under the theme; ‘Back to Basics,’ released this Monday, Dr Mangudya introduced a three tier financial sector instrument aimed at ensuring bank compliance to capital levels by 2020 to increase deposits.

A resolution on non-performing loans has been crafted by the monetary authorities to solve challenges affecting banks at a time the central bank says it is in talks with four troubled banks to resolve their liquidity challenges.

The RBZ in consultation with the Bankers Association of Zimbabwe (BAZ) has formed a forum that will meet on a quarterly basis to review bank charges, interest rates and credit reference systems.

As a measure to bring financial discipline in the economy, Dr Mangudya said the central bank is providing pardon or amnesty to previous offenders of exchange control policy.

The other amnesty is conditional whereby the RBZ is providing 90 days for exporters to comply with the provisions of the exchange control policy.

As part of efforts to mobilise or retain increased capital in the economy, the central bank has with immediate effect reduced the limit on cash export on a person to US$5000 from US$10000.

Meanwhile, monetary authorities will in the next few weeks import US coins and South African rand coins to solve the lack of change in the economy.

Furthermore, the central bank says an interbank market supported by the African Export Import Bank (Afreximbank) will start by mid-September this year.