THE Reserve Bank of Zimbabwe has temporarily stopped giving
US dollars to banks for withdrawal by individuals, as the latter are
said to be at the centre of black market currency dealings.
The central bank has been importing cash to ease shortages,
but the money is quickly diverted to the black market.
The RBZ is now concentrating on funnelling money to productive
sectors to increase production for exports and boost foreign currency earnings.
In an interview with The Sunday News, RBZ Governor Dr John
Mangudya said, “Even if we put a lot of money into ATMs, people will take the
money and go and sell it because the US dollar is being looked to as an
investment as opposed to being a medium of exchange.
“So what makes people take money from the ATM is that they
want to sell it 50 cents above its value … it has become an industry of selling
money but we need to sell products.
“… should we put more money into ATMs for people to get
money or should we put more money into the industry, which is employing people?
It’s better to go for the latter.”
Dr Mangudya said the apex bank would continue advocating
for the multiple-currency regime until macro-economic fundamentals were
addressed.
“Currency reforms require that we address the challenges
that the economy is facing, which are your fiscal deficit, which is the major
source of money in the market.
‘‘That fiscal deficit also affects the current account
deficit because it feeds into more money even into the people’s pockets thus it
increases the demand for imports.
“So the major economic challenge we are facing is that we
need to first of all deal with fundamentals. Our issue is not a currency
phenomenon. It’s about a production phenomenon. It’s about dealing with the
fiscal deficit so that we bring the economy into balance,” said Dr Mangudya.
The central bank boss expressed satisfaction with the impact
of the RBZ’s export incentive scheme.
He said several companies had increased exports by more
than 70 percent and capacity utilisation by over 80 percent.
“We are quite happy that the export incentives that we are
giving to the industry or to the economy are paying plenty of dividends. If you
check all companies that are exporting now, they will tell you that the export
incentive scheme was and is the panacea for increasing exports in Zimbabwe,”
said Dr Mangudya.
He said the new political dispensation’s ease of doing
business reforms were bearing fruit.
“If you put policy measures against capital people won’t
invest because they will be skeptical that they will channel their investment
for an empty cause but right now Zimbabwe is open for business.
‘‘These are the fruits of opening up the economy for
business, just imagine it’s only six months (since President Emmerson Mnangagwa
assumed office).
“Right now we feel we have done very well as a country
under very difficult circumstances but we are not saying there are no
challenges.
‘‘We need to celebrate that success as opposed to
undermining ourselves, because companies have improved and people are getting
employed,” said Dr Mangudya. Sunday Mail
