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RBZ Governor Warns Corrupt Elements

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RESERVE Bank of Zimbabwe (RBZ) Governor Dr.John Panonetsa Mangudya has warned corrupt elements involved in illegal foreign exchange trading. Mangudya made emphasis on the dissenting voices trading in the black parallel market to desist from the destabilising habit of spreading malice.Speaking exclusively to TechnoMag, Dr Mangudya warned the rogue vultures to stop forthwith propagating messages that fuel local currency volatility through social media platforms, which creates panic and despair in the members of the public.

Also speaking during an officers’ conference at Rodgers Alfred Nikita Mangena Barracks, hosted by the Zimbabwe National Defence University (ZNDU), Dr. John Mangudya said that people are constantly reminded of the hyper-inflationary environment they experienced in 2008, leading to a lack of confidence in the local currency among the general public.

He indicated that panic was leading people to constantly and unnecessarily hunt the US dollar, as a hedge against inflation, over preference for the local currency.

“We have tried to convince the public that colleagues have allowed us to use the local currency, we will not go back to 2008, but due to the polarization in this country, people are now using social media to remind people that we are now going back to 2008. .

“Whenever those messages are sent on social media it is not for love that they want to remind you of 2008 so that you panic and go to their market and buy foreign currency (for hedging) at an exorbitant rate.

“Whenever people have Zimbabwean dollars in their pockets they want to dump them and look for foreign currency. This is what is happening. We understand that people are afraid of the hyper-inflationary environment of 2008 because they were once bitten twice shy, and now I’m always on the lookout for the US dollar, “said Dr. Mangudya.

The RBZ Governor who is the final Monetary authority at the apex bank has severely threatened with unspecified punitive measures against the culprits fuelling parallel market activities that have a serious negative impact on the economy.

This comes in the wake of an unrelenting surge in the parallel foreign exchange market, particularly observed in late September and October, which pushed the parallel market exchange rate to levels that were nearly double the official RBZ exchange rate , which ranged between $ 86- $ 90 to US $ 1 at the time.

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