HARARE- The Reserve Bank of Zimbabwe says it will introduce a new currency in the next fortnight as part of the central bank’s currency reforms.
Addressing media on Tuesday, chairperson of the monetary policy committee and also the central bank chief John Mangudya said the currency introduced is expected to stabilise the market which has resulted in the soaring of the parallel market rates.
The new currency will comprise of $2 and $5 notes which will be used concurrently with the bond notes and coins.
“In this regard, the Committee noted with satisfaction the fact that the domestic economy in 2019 achieved new heights in terms of the utilization of electronic systems for market transactions. However, the Committee felt that there was a need to boost the domestic availability of cash for transactional purposes through a gradual increase in cash supply over the next six months.”
On exchange rate, Mangudya said “The Committee noted that the current exchange rates may not reflect economic fundamentals based on the balance of payments position. The recent trend in the depreciation of the exchange rate was in part occasioned by an increase in reserve money and adverse inflation expectations. 17. In this regard, the Committee agreed to put in place measures that will minimise monetary shocks and enable the exchange rate to gravitate towards its equilibrium path.”