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RBZ Says They Dont Know Where RTGS Balances Are Coming From; Can They Fix The Economy Then?

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John Mangudya (RBZ Governor)

The Reserve Bank of Zimbabwe (RBZ) says it doesn’t know where the RTGS balances are coming from. This is the central bank we are talking about and they don’t know where 95.5% of the supposed ‘money’ we are using is coming from. How ironic. Speaking about this phenomenon, Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mangudya yesterday said:

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In that amount only 4,5 percent are coins and notes, which is your bond notes and coins… therefore, if we remove them they won’t resolve the problem. The problem is about the 95,5 percent held as RTGS balances in your accounts. Where is it coming from? So, the question which we should be asking ourselves is where is this money coming from? That’s why we need to plug the holes not from the medium of exchange that you have taken away from the bank. The money in your account didn’t come from bond notes, not at all.

Isn’t it a no-brainer that, the RBZ as the regulator should know the ins and outs of the financial system. That way they are able to spot anomalies? Is it the incompetence of RBZ or the cunningness of the perpetrators (those who are adding RTGS balances in our financial system) that’s making RBZ fail to know where this 95.5% magical money is coming from?

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Not knowing where those RTGS balances mean that the RBZ may probably never find a solution to get us out of this economic mess. Where will it even start to nurse our economic wounds if it doesn’t know the origin of that money? The money (both RTGS balances and bond notes) that is causing monetary inflation which has consequently raised the cost of living in Zim.

Right now we have a problem of black markets (both currency and commodities black markets) that have popped up are as a result too much money supply. Speaking of currency black markets, there is that whole issue about ‘Big Dogs’ who are fuelling this market with bond notes and RTGS balances. After this talk by the Governor, it shouldn’t surprise you that these “influential people” are slipping through RBZ’s nets.

Dealing with the problem of fictitious RTGS balances will probably take their abolishment as a solution, but that will be a recipe for impoverishing the average Zimbabwean.

 

Bond NotesJohn MangudyaReserve Bank of Zimbabwe

Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes

John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya

The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe

13 thoughts on “RBZ Says They Dont Know Where RTGS Balances Are Coming From; Can They Fix The Economy Then?

  1. I think he is being rhetoric when he says “Where is it coming from?” He knows where the balances are coming from and he is tossing that to every Zimbabwean to ponder and use their brains to find out the real source of the economic problem. That’s why he goes on to say “So, the question which we should be asking ourselves is where is this money coming from?”

    1. One wishes that was actually the case. The other scarier possibility also exists – that this man doesn’t know a thing about how the central bank works.

  2. Only crypto can fix this. This current digital currency might actually be worse that bearer checks. With crypto you can’t increase the supply without actually mining the currency. Essentially its like virtual US Dollars.

  3. When the USD shortages started, government actually had problems paying the civil servants and for some months they resorted to staggering these payments and it would be news whenever they managed to pay. They were still trying to do the right thing and pay their bills with real money. The reason we don’t hear about these problems anymore is because they have simply stopped bothering themselves about balancing the cash inflows and outflows. New ‘money’ from nowhere is being poured into civil servants’ accounts as salary payments thereby diluting everyone’s real money hence the inflation we are witnessing today.

  4. So lumumba wz ryt then😨 those suspended RBZ guys were offloading money in Mozambique and bringing it by trucks😈 thats the money which they don’t know abt

  5. we must not let this son of a bitch get away with it like gono did. lets nail this jon bond prick !!

  6. If does not, then what it simply means is that he is incompetent for this post and he should should resign

    1. It is funny because if this fictitous money did not exist Zimbo government would have gone bankrupt a long time ago. Now the man who engineered it all says he knows nothing about it. All this time has passed and it is only now that he starts ringing the alarm bells, if he truly knows nothing about where it came from, he would have mentioned the problem before it consumed the entire financial system. It is too late now to “plug the holes”, the damage is already done.
      But wait, if the money in our accounts is neither Bond dollar nor US dollar, what currency is it? RTGS dollar???
      What about the whole AfreximBank 1 is 1 facility? Does this mean that it will not guarantee 1:1 convertability for our bank balances? Then again, the whole thing sounded too good to be true anyways, the devil is always in the detail.

  7. I hear that RTGS balances are estimated at $9bn and government domestic debt is also around the $9bn figure. What a coincidence.

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