Published: 2016 June 14 08:14:58 (7076 Views)

RESERVE Bank of Zimbabwe (RBZ) governor, John Mangudya yesterday told Parliament the central bank had no authority to introduce the South African rand, as the country’s official currency or change from the multi-currency system.

Mangudya said this when he appeared before the Finance and Economic Development Portfolio Committee, where MPs grilled him about the introduction of bond notes and other financial matters.

“The governor has no authority to change from the multi-currency system that we are using to the rand because it takes a long time and such an announcement also shocks the market. So, for now, let us deal with the multi-currency system because it is a flexible system,” he said.

Treasury and the RBZ last week ordered line ministries and parastatals to embrace the multi-currency system for various transactions in light of the current cash shortages.

“What it means is that every institution must be able to accept the rand, euro and other currencies as a form of payment. Government is the biggest customer in this economy, with almost 60% of transactions and there is no reason why they should not accept the rand,” Mangudya said.

He said he would soon announce a new schedule of bank charges after depositors complained of high charges demanded by banks.

“The $200 million incentive will support exports worth $6 billion and it will not be disbursed all at once, but it will be on a gradual basis. Come October, when they are issued, you will not even see the bond notes – maybe you will begin to see them next year because these bond notes will be so scarce because they are meant to incentivise exporters and half of this year it will be $1,8m from the $200m brought into the market.”



- News Day

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