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What a confusing statement. The governor of the Reserve Bank of Zimbabwe, John Mangudya said this:
People should not get confused. In the bank, the RTGS balances have the same value with the USD but when one wants forex at the bank, then it changes and its value is determined by the rate prevailing at that particular bank.
We have not devalued the RTGS balances, but allowed people to access the forex at a rate which is competitive and allows the economy to grow
Your $1 000 in the bank is still $1 000. However, when you want to get the USD$, the rate and value will be determined by the market
The above statement is meaningless to say the least. The value of the newly created RTGS dollars is not equal to the value of US dollars. Mangudya appears to still want to attempt saving face. It’s too late for that now, he should accept the reality. In fact his monetary policy statement already acknowledges this reality and he himself admitted his guilt in insisting the money in our bank accounts was equal to Us dollars.
Yes he didn’t devalue the bond
It’s true that the RBZ did not devalue the bond note but they have floated it to trade against other currencies. It is no longer what they used to call a surrogate currency (whatever that was). Devaluation will come from the market, indeed this has happened already when the banks agreed to start off the trade at USD1 : RTGS2.50.
The truth is the market devalued the money much earlier, it’s just that the true market existed outside formal banking systems, the so called black market. Of course, the government had long since stolen our money.
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