So today the Reserve Bank Governor, Dr John Mangudya presented his much anticipated monetary policy statement. There had been speculation last week that the governor was finally going to throw in the towel and liberate the interbank rate which has been withering in a cage.
He did nothing of the sort. In fact apart from spouting well known and worn out statistics there was nothing really exciting about this policy. He spent much of his time swinging between self-praise and bemoaning the situation.
Apparently the Zimbabwean economy is on track and the monetary policies in place are all that we need despite all short-comings.
The sum of all is utterances
- He told us cash is just 3% of the money in circulation. No wonder we are having cash shortages
- The total money in circulation is around 34.5 billion and most of it is controlled by 200 entities. Are these the cartels everyone is always talking about? Is this a good or a bad thing?
- Nothing is changing with regards to payment of duty in foreign currency
- De-dollarisation is working by the way because it’s a process
- Lots of other stuff nobody cares about was also said