Own Correspondent|RBZ Governor Dr John Mangudya says that his priority in the new year is stabilising the exchange rate of the Zim Dollar and to curb inflation and this can be achieved if Zimbabweans love each other.
In an interview with state media, Mangudya said that he expects the economy to continue responding positively to the policies that Government is implementing.
Dr Mangudya conceded that last year was “generally tough” but said the central bank was “bullish” that 2020 will be better.
“Our message as the central bank is very clear; our key focus areas are on currency stability and reducing and stabilising inflation in Zimbabwe.
“It is necessary to ensure that we achieve the focus areas that were enunciated or pronounced by the President — productivity, economic growth and job creation.
“We need to ensure that the key drivers (for job creation, economic growth and increased production) are currency stability and making sure that we reduce and stabilise inflation and also that there is social cohesion in the country so that at least we all enjoy what comes in 2020.”
“So our story is very simple. Let’s keep moving; let’s keep praying for the country and let’s increase love among each other; for with love nothing is impossible. We want the spirit of togetherness, it helps on the monetary side, it makes it makes it much easier for us,” said Dr Mangudya. .
Turning to the availability of physical cash from banks, Dr Mangudya said the RBZ would continue to drip-feed the market.
He said the RBZ was happy public confidence in the local currency continues to rise.
“Its availability, as we have said before, will continue to be made on a gradual basis to ensure that by end of the second quarter of the year, the shortage of cash in the banks should be a thing of the past. People should be able to go to the banks to withdraw the cash that they need. That way, you are also improving confidence in the sector and it also helps people wanting to bank their money because they know they will get it back when they want it.
“The limitation (for increasing cash) is that the money needs to printed and the printing comes at a cost. It’s not done for free, we also need foreign currency to print money so we have to do it gradually otherwise it ends up being costly,” said Dr Mangudya.
He urged people to continue using plastic money.
“We have said it many times that our aspiration is to have money and notes in circulation of around 10 percent because South Africa and the rest of the world are on 15 percent, so we want to ensure that we are within that range. So far we are about 7 to 8 percent and we need that to increase, and that is what we are doing.”