New notes and coins won’t cause inflation, RBZ

Reserve Bank of Zimbabwe Governor Dr John Mangudya

Bank notes and coins introduced early this week to satisfy legitimate demand for coins and small notes will not fuel inflation, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya has said.

Governor Mangudya said this while speaking at a mining stakeholders’ breakfast meeting in Harare today on the roadmap towards the realisation of Government’s US$12 billion mining sector milestone.

The central bank on Monday began releasing the first batch of new $2 bond coins, $2 and $5 notes into the market in what is expected to culminate in a total of $1 billion cash injection over the next six months.

The new coins and notes will add to the $855 million bond notes and coins already in circulation, as monetary authorities target bringing the cash to 10 percent of money supply, which sits at $19 billion.

Before the introduction of the new coins and notes, Zimbabwe had the lowest cash to total deposits ratio in the region at just five percent.

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