Zimbabwe releases $40 million for fuel, says no need to panic

The Reserve Bank of Zimbabwe says there is no need for people to panic as it has released $40 million to procure fuel.

The money was drawn from the $500 million lines of credit which Central Bank governor John Mangudya said on Monday would be used to procure essential commodities like fuel, electricity, wheat and raw materials for the manufacturing of cooking oil and packaging.

Zimbabweans have been queuing for fuel over the past few days despite assurances from the government that there was no need to panic.

Instead, there are increasing calls for Mangudya to step down because he is failing to handle the situation.

Mangudya is serving the final months of his first term at the helm of the central bank.

“The Bank released US$40 million for the procurement of fuel on Friday, the 5th of October, 2018 and the fuel is currently being supplied and delivered to the various filling stations and supply points across the market,” the Central Bank said in a statement.

“The Bank is grateful to the National Oil Company of Zimbabwe for working round the clock to ensure that the fuel is delivered to the oil marketing companies across the country.

“In view of these positive developments, the Bank would like to assure the public that there is sufficient fuel available in the country and therefore there is no need for panic-buying of fuel and other essential commodities.”

The Central Bank also condemned the recent increases in prices of goods saying this is unwarranted.

“The Bank has noted that increase of prices of certain goods has followed the spike in foreign currency parallel market rates which is being caused by some people bent to dupe the public of their hard earned income,” the statement went on.

“The opportunists are manipulating foreign currency parallel market rates to cause unnecessary panic and despondency and destabilisation of the economy. Such counterproductive behaviour is unwarranted and should be condemned by all peace-loving Zimbabweans.

“The Bank would also like to reassure the public that the multi-currency system will remain in use and the Bank shall continue to secure lines of credit to supplement the country’s foreign currency earnings from exports and diaspora remittances in order to support the entire economy.”

There has been panic since the Central Bank allowed people to open foreign currency accounts leading to speculation that bond notes were now a currency to be rated against the US dollar.

Zimbabwe also introduced a two cents tax on transactions which has met stiff resistance from consumers and business.

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