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RBZ decries divided politics

by Staff reporter
08 Nov 2021 at 05:22hrs | Views
RESERVE Bank of Zimbabwe (RBZ) has bemoaned polarisation and the negative impact of social media for derailing the central bank's efforts to stabilise the exchange rate.

Addressing senior army officers at the Rodgers Alfred Nikita Mangena Barracks, (formerly the Zimbabwe National Defense University) in Harare last Friday, the RBZ governor, John Mangudya said the two negative factors had seriously affected the stabilisation of the exchange rate.

"Despite trying to convince the public that we have been allowed to use the local currency, and we will not go back to 2008, but due to the polarisation in this country, people are now using social media to remind people that we are now going back to 2008," he said.

Mangudya's remarks come at a time when the parallel market rate continues to rise with the opposition MDC Alliance Vice President Tendai Biti predicting it will reach US$1: $200 before the end of November.

"Whenever people have Zimbabwean dollars in their pockets, they want to dump them and look for foreign currency. This is what is happening," Mangudya added.

"We understand that people are afraid of the hyper-inflationary environment of 2008 because they were once bitten twice shy, and now they are always on the lookout for the US dollar," said Mangudya.

The central bank chief said when the public see messages on social media platforms attacking the local currency, they are pushed to backslide into the 2008 frenzy.

Meanwhile, the RBZ has predicted foreign exchange revenues this year were expected to surpass the 2020 margin on the strength of mineral exports and diaspora remittances.

Records from the bank show that as of October 2021, the country recorded a total of US$7,2 billion. Export revenue rose 54,5% to $4,5 billion from January to mid-October compared to US$2,9 billion in 2020.

Source - NewZimbabwe