Categories: Stories

Multi-currency system is dead says RBZ

Mangudya said the central bank was also encouraging use of plastic money by government institutions and public utilities to reduce demand for cash.

Roman Catholic Church Vicar General for the Harare Archdiocese, Father Kennedy Muguti told the central bank boss that people no longer had trust and confidence in government policies.

“People are still nursing wounds from the past,” he said, alluding to loss of savings when use of the Zimbabwe dollar was discontinued overnight.

Barclays Zimbabwe managing director, George Guvamatanga proposed that the central bank should introduce a maximum withdrawal limit of $500 per week.

He backed introduction of bond notes, arguing that the US dollar was being abused.

”Why should tomatoes that have been produced in Mutoko be paid for in foreign currency, why must workers be paid in foreign currency,” Guvamatanga questioned.

“We need a means of transacting that is not going to be abused. We cannot keep on bringing money into the economy that is disappearing.”

Guvamatanga appealed to bankers to slash charges to encourage use of plastic money. His appeal follows the announcement by Steward Bank chief executive, Lance Mambondiani that his bank would effective Wednesday slash money transfer charges by 50 percent.- The Source

 

 

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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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