RBZ: Pub­lic not forced to use bond notes CRB sys­tem set to go live soon: Man­gudya

Chronicle (Zimbabwe) - - Business - Harare Bu­reau

THE Re­serve Bank of Zim­babwe will not force the pub­lic to use bond notes but is rather try­ing to mon­e­tise the five per­cent ex­port in­cen­tive with­out do­ing away with the multi-cur­rency regime, Cen­tral Bank Gover­nor Dr John Man­gudya said.

Speak­ing at the Con­fed­er­a­tion of Zim­babwe Re­tail­ers Statu­tory In­stru­ment 64 of 2016 break­fast meet­ing on Mon­day, Dr Man­gudya said any­one who will not be in­ter­ested in us­ing the bond notes can just use plas­tic as an al­ter­na­tive or any other cur­ren­cies.

“On bond notes the RBZ is not forc­ing the coun­try to use them but was rather mon­etis­ing the five per­cent ex­port in­cen­tive with­out do­ing away with the multi-cur­rency regime.

“The in­trin­sic value of the ex­port bonus or in­cen­tive scheme is to at­tract and en­hance ex­ports by Zim­bab­weans so that at the end of the day there is enough for­eign cur­rency in this coun­try,” said Dr Man­gudya.

“If you are get­ting a $400 salary, you will still get $400 in United States dol­lars, bond notes, rand or eu­ros. If you don’t want them then you use plas­tic money. We are not forc­ing any­body to use bond notes,” he said.

Dr Man­gudya also said there were no banks keep­ing money off­shore to sab­o­tage the econ­omy adding that a tight mon­i­tor­ing sys­tem is in place to mon­i­tor the flow of forex from the econ­omy.

“What I want to say is there are no banks keep­ing money off­shore for the sake of try­ing to sab­o­tage the econ­omy.

‘‘That is the rea­son why we have a for­eign cur­rency com­mit­tee, which is al­ways there to see how much money they have in their nos­tros and how much money they are giv­ing to their cus­tomers,” said Dr Man­gudya.

He said to curb the cur­rent forex deficit, the cen­tral bank was in the process of com­ing up with a nos­tro sta­bil­i­sa­tion fa­cil­ity aimed at en­sur­ing that the gap be­tween de­mand for for­eign cur­rency and the money avail­able is nar­rowed.

“We have ar­ranged fa­cil­i­ties for nos­tro sta­bil­i­sa­tion to en­sure that the money needed for im­por­ta­tion and needed to do busi­ness is avail­able,” he said.

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