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:
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?
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.