RBZ to introduce new money in November

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By Kundai Maponga

A new currency will make its debut in two weeks when the central bank is expected to unveil new bank notes and coins at a rate of 1:1 with the bond notes and RTGs dollar governor of the Reserve Bank of Zimbabwe (RBZ), John Mangudya has said.
Speaking in Harare on the deliberations of the Money Policy Committee (MPC) Mangudya said the injection of the new money will ease the liquidity crisis.
The new currency which will be refered to as the ZW dollar is expected to wipe out the RTGS dollar but through a gradual process that will see, the RTGs, bond notes and the new money being used interchangeably.
Mangudya said the new money will come in denominations of $2 and $5 notes while the coins will be in $2 and both of them will be used interchangeably 1:1.
“We are going to have coins of $2 in circulation, $2 and $5 of currency money in circulation. They are going to be used interchangeably as 1:1 and the new currency won’t be called bond notes but they are just called two dollars, five dollars,” Mangudya said.
Through the MPC Mangudya tried to address issues of money supply, inflation, exchange rate and interbank market which are at the center of the economic meltdown.
“The Committee remains convinced that if strict fiscal and monetary discipline are maintained, it will be possible to achieve low inflation and stability within the shortest possible time,” he said.
However, some economic analysts have warned on social media platforms that introduction of new currency will likely trigger high rates of inflation.