Chinamasa says if Zimbabwe releases $100 million today this would disturb the economy


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Finance Minister Patrick Chinamasa says the Reserve Bank of Zimbabwe is releasing bond notes gradually because if it released $100 million for example, this would disturb the economy.

He had been asked by Harare Central legislator Murisi Zwizwai why the central bank did not just release the money since some people were queuing as early as 2am because in some cases only 100 people were being served.

Chinamasa said the central bank had so far only released $29.6 million and this was expected to lessen the cash crisis.

“The issue of bond notes is not an overnight thing,” he said.  “The Reserve Bank will work flat out so that they work things out.”

When pressed for a better explanation, Chinamasa responded: “There is nothing to add from what I have said before. What I have said is that the Central Bank is aware and is seized with the matter that the money circulation is tight and they are going to increase in line with the country’s needs.

“If we put US$100m right now, it will disturb the economy. You will not understand it. They found it prudent that the bond notes be released gradually and increase when the demand is higher like this festive season.”

Q & A

*HON. ZWIZWAI:  Thank you Hon. Speaker.  I want to thank you for reprimanding me.  I was caught unaware.  I did not know that Hon. Mnangagwa is the acting President. I am sorry for that.

My question is directed to the Minister of Finance and Economic Development. I have gone around Ward 6 of Harare where all the banks and shops are situated.  There is a cash crisis which we thought was going to be eased by the introduction of bond notes.  Parents and domestic workers want money to use during the festive season.  They need money for transport to ferry them to the rural areas.   They cannot use POS machines or Eco-cash in the buses but they do not have the bond notes to use. The money that is being given is one hundred dollars which is three hundred dollars per month and the money is scarce. People wake up very early at around 0200 a.m. and only 100 people are given money.

We would want to know the plans that you have because all the people were waiting for the bond notes.  They thought things were going to be easy but now the bond note is there and there is no change.  People are suffering especially during this festive season.

HON. CHAPFIKA:  On a point of order Mr. Speaker.

THE HON. SPEAKER:  There is no point of order allowed – [HON. MEMBERS:  Inaudible interjections.] –

Continued next page

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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