The Reserve Bank Governor, John Mangudya has just admitted that he prejudiced exporters by taking their money at an unfavorable rate regardless of the inflation rising at least 3 times since October last year. During a DailyNews Breakfast Meeting this morning, the Governor said:
I am guilty as charged. Taking exporters’ money at $1:1 when prices had risen by 3 or 4 times was unfair.
The self-incrimination of the Governor stems from the fact that he first noticed the unfairness of taking exporters money at 1:1 back in October but it took him 4 months to address the prejudice the RBZ was afflicting to exporters. During the question and answer segment of the Breakfast Meeting, he said:
Question to Dr. Mangudya : When did you realise that $1:1 doesnt work and a cost to exporters?
Dr. Mangudya answer: When the markets ran away in October 2018 and when inflation set in I realised we needed to change and $1:1 can’t uphold.
How did he rectify it?
Now exporters will be given a fair value of their export incentive that will be determined through a competitive market called, Interbank Foreign Currency Exchange Market where they will get the lowest possible exchange rate.
Credit: All the quotes were taken from ZimBollar Twitter page