Cash crunch ‘haunts’ Mangudya ahead of monetary policy report

By Bianca Mlilo

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya will present the 2017 monetary policy statement next Monday where he will outline measures to deal with the persistent liquidity challenges facing the economy.

“I will present my monetary policy statement on Monday,” said Dr Mangudya in an interview with Business Chronicle.

The much awaited monetary policy is expected to complement Finance and Economic Development Minister Patrick Chinamasa’s 2017 fiscal policy statement, which is anchored on revitalising the productive sectors of the economy for sustainable growth.

Economic experts have said Dr Mangudya needs to seriously deal with the persistent cash shortages and respond to industry concerns over depletion of nostro reserves, which are threatening to cripple productivity as firms struggle to get foreign exchange to pay their raw material suppliers on time.

Economist and trade expert Dr Gift Mugano said the RBZ should come up with measures to promote short to long-term funding to productive sectors as well as increase savings.

Key issues such as the state of the banking industry, harnessing diaspora remittances, non-performing loans, impact of bond notes and export receipts are expected to dominate the RBZ’s monetary policy statement.

An economic commentator who declined to be named said it was imperative that the RBZ restores confidence in the banking sector by dispelling rumours of the disappearance of the US dollar from the market.

“We also expect to see charges related to mobile money transactions being addressed because they were not dealt with when the Reserve Bank reviewed downwards bank charges,” he said.

“RBZ also has to talk about further reduction of bank charges, they are still relatively high. Bank withdrawal limits and the issue of visa cards should also feature in his statement,” said the economist.

Business analyst Mr Bernard Kasekete said the forthcoming monetary policy should set the tone for the restoration of business and economic confidence.

“It is now up to them to do their best for the nation,” said Mr Kasekete.

Bulawayo-based economic commentator Mr Ndawo Khumalo said he expected Government to uphold the fiscal policy statement and implement the measures it would have outlined. The Chronicle