A close source working on the banking system has provided TechnoMag with evidence that the Reserve Bank of Zimbabwe,(RBZ) has been creating unfounded currency which it introduced into circulation.
This currency has no international exchange value, neither can it be traced its originality, except , it raises more questions than answers which the reserve bank must explain.
The source allegedly proves that the RBZ settlement system for all local transfers has been using a “rogue” currency called (ZWL), a tag which means Zimbabwe Dollar Local, since the adoption of foreign currency and dumping of Zimbabwe Dollar (ZWD).
All RTGS transfers which were initiated for local banks as way back in 2009 were not using foreign currency, which is mainly USD but were actually transacting as ZW, which is a currency that only exists in the RBZ settlement system, and nowhere else
Sources allege that this currency is actually Zim dollars digitally printed by the central bank, to serve for all local cash movement, and while the actually USD was used to settle for any international or regional settlement.
If this evidence is true at all, then it’s the only logical reason why Zimbabwe is in this financial mess, and may not come out of it till it gets a foreign loan or miraculous funding to close the hole.
This technically means our bank balance reflect, a ZWL currency, which the RBZ is struggling to settle against any international payment, since the balance does not have nostro backing to support.
The biggest joke and lie which the RBZ has only publicly uttered is to blame externalization and unethical business practices as the reason for lack of hard cash, while it has never explained how this then affects the digital bank balances causing national chaos, when companies and individuals try to pay for international services.
While it remains ironic, how Zimbabwean bank accounts are fully funded , in a country using foreign currency , we are reeling under pressure due to lack of actual foreign currency, not in hard cash but even in bank transfers.
The only explanation that the RBZ owes the nation is what kind of money then is sitting in our bank accounts.
This then technically means the RBZ decides what is important for you or your company ,not your buying power which is actually a violation and an illegal move for anyone who is supposed to the rightful owner of foreign currency.
Most banks in Zimbabwe have suspended use of the bond notes to settle any international payment, demanding that you deposit actual US dollars or Rands for any international service, proving that the bond notes are just a reflection of the ZWL which has been circulating.
Due to banking withdrawal pressure, the RBZ could only find it logical to reflect the digital ZWL, with an equivalent currency in form of bond notes which is a local currency, one can actually touch and use locally.
The move temporarily eased pressure at the banks, as locals were given some form of money reflection, when they demanded cash from their banks which could no longer sustain the demands.
The real threat is whether or not the RBZ will be able to cover this hole with real currency which was created years back now.
It only becomes logical for the banking public to stop banking their real currency as the RBZ has proved that they can no longer be trusted with handling the nations hard earned currency.
An Economic analyst added his voice into the foreign currency situation and said.
Essentially, fuel is in bond, but oil companies couldnt draw as they are receiving little physical USD (cash receipts down over 70% – mainly bond notes paid at Service Stations).
Tobacco merchants have already started bringing in their funds (floors open in the 15th) However, significant portion of that is already committed, and may not solve Zim’s forex issues.
Additionally, govt has to fund maize purchases through GMB (1m tonnes at $190/tonne subsidy)….so the fiscus defecit shall balloon.
From a financing perspective, for every $1 CBZ holds, 45c is in govt TBs. This ratio will increase for other banks as well….all highly inflationary!!!
Bottom line for retail and FMCG – ensure that stock that has an imported component is paid for….amd perspective value via pricing.
Forex through the banks had to be diverted to pay for fuel in bond this week.