#MondayBlues: RBZ Official Lets Cat Out The Bag

The Reserve Bank of Zimbabwe (RBZ) official came close to apologizing for the prevailing  hard cash shortages as one of its official finally let the cat out of the bag and confirmed that its infact the government that caused the crisis, not the so called externalization rhetoric they sing during the day.

Speaking at the Zimbabwe Tourism Authority (ZTA) Consultative Workshop in Victoria Falls, RBZ representative, Mr Mandimanzi said that the foreign currency shortage currently being faced by Zimbabwe is because of the RBZ and the government’s overspending.   He said the current foreign currency shortages was due to its activities and not those of the alleged foreign currency externalizers, confirming that they in fact printed fake digital currency which can not be backed. 

“The foreign currency we are currently having is caused by government activities which failed to back up the foreign currency reserves using the NOSTRO accounts,” said Mr Mandimanzi.

The average Zimbabwean cannot make sense of how the economy lost all the foreign currency the nation had when there was a time when foreign currency was used in the day to day transactions. At the moment, the economy doesn’t only have a foreign currency shortage, but a cash shortage as the pseudo-currency in the form of bond notes have failed to ease the pressure of the cash shortages in the country.

Mr Mandimanzi went ahead with trying to break down some of the government payments that go through the Central Bank and require foreign currency.

He also added that the Central Bank is only getting 30% of all the foreign currency in Zimbabwe while the 70% remains with the banks. But despite maintaining such huge foreign currency deposits, local banks have been stringent in disbursing these funds even to people and businesses generating foreign currency for these banks.

“We are only taking 30% of the foreign currency and leave the other 70% with the banks. We are working on finding out what the banks are using their 70% foreign currency. Banks do not have to apply to the RBZ to use the foreign currency at their disposal. But we have given banks guidelines in terms of priorities,” added Mr Mandimanzi.

While this is a huge revelation, it remains to be seen what the RBZ is actually doing considering that it has been sitting on this information for long. The reluctance of the RBZ in taking action has been appalling as they have deliberately taken many steps against the will of the people, despite the fact that the people suffer because of the decisions and actions of the Central Bank.


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