Former MDC Alliance top official Eddie Cross Says that the Zimbabwean dollar’s gains on the official market-driven foreign currency auction platform has created huge demand for the local currency on the back of growing confidence levels as well as price stability.

Cross who is a Businessman and member of the Reserve Bank of Zimbabwe, RBZ, Monetary Policy Committee said the demand for the local dollar was a confirmation of the expanding market.

“The shortage of RTGs is a function of the market, the market is beginning to expand, people are increasing trading in local currency and as a result, shortages have surfaced. If we were to print money to cover the shortage it will be inflationary, so we are not going to do that,” said Mr Cross.

“We have been deliberately restricting RTGs (electronic money) because historically that has been the main source of inflation in Zimbabwe. This tight money supply we are going to maintain it for the present time. If people want RTGs they have to either sale foreign currency in exchange for RTGs or earn for RTGs.

“The velocity of money is very considerable in Zimbabwe. We trade about $3 billion a day in RTGs. So, it’s not a question of not trading, we are trading.”

Mr Cross said the country has had slight or zero inflation increase in the last two months and expectation was that stability would persist up to the end of the year. United Refineries Limited chief executive officer, Mr Busisa Moyo, has also acknowledged that getting the local dollar was now a tough task. “Times change and experiences may differ though. I never thought as operators we would be hunting, cutting deals and discounting to get local currency (RTGS/ZWL),” he posted on his Twitter account.