'Zimbabweans have too much money in their pockets' says Mangudya

Reserve Bank of Zimbabwe Governor John Panonetsa Mangudya has claimed that the increase in prices of commodities is caused by the increase in money supply available in the pockets of Zimbabweans which increases their spending habits.

He was speaking in parliament on Thursday when he appeared before  the parliamentary portfolio committee on energy.

"The demand that we have seen in the last quarter of this year has been very significant. It has been difficult to meet the needs of everyone 100% over the past quarter because people have money in their pockets." Mangudya said. "I think we should ask ourselves where this money is coming from because inflation is caused by increase in money supply."

Mangudya further said the Minister of Finance Mthuli Ncube is working on measures to curb this inflow of cash into the hands of Zimbabweans.

"That tap where the money is coming from is the one that the Honourable minister of Finance is trying to close. As long as one has money in their pockets, they demand more gas, more cooking and more fuel these things which need to be imported yet we do not have enough foreign currency."

Mangudya alleged that there is enough fuel in the country because the economy is ballooning.

"There are now traffic jams on our roads, wherever you drive. That shows us that the fuel situation is not as bad as it is shown by the queues because if the situation is so acute we would not have such traffic jams at the same time we have fuel queues," said Mangudya.

Zimbabwe has been facing sky rocketing prices and shortages of fuel in the past months, a situation that has cast a gloomy cloud upon Zimbabweans as they enter the festive season.