ZW$1.1 billion notes in circulation: RBZ

The Reserve Bank of Zimbabwe has said it has disbursed ZW$1.1 billion into the market.

Zimbabweans are however still struggling to access cash from banks as most banks are doling out just ZW$300 (at most) per individual each month.

People have resorted to buy cash on the streets due to the cash shortages.

Giving an update on the latest deliberations of the Monetary Policy Committee, RBZ Governor Dr John Mangudya said the notes on circulation account for 3.2 percent of total balances.

“Following its decision in October 2019 to increase the quantity of bank notes and coins in the local market to try and reduce the premium being incurred on cash and to give the public more access to their cash balances with financial institutions, the Bank has imported additional bank notes and coins to the tune of ZW$400 million.

“An amount of ZW$150 million was disbursed in the last quarter of 2019 to give a total of ZW$1.1 billion of notes and coins in circulation in the country as at 31st December 2019. This ZW$1.1 billion of notes and coins in circulation, represents 3.2% of total banking sector deposits of ZW$34.5 billion as at 31 December 2019,” he said.

Added the governor:

“As per normal banking practice, these funds were sold to local banks for distribution to clients in exchange for RTGS balances, so as to neutralize any expansion of money supply and therefore, inflation.

“The MPC agreed that it should maintain its plan of getting the proportion of bank notes and coins in circulation up to 10 percent of deposits and that the Bank should consider the introduction of notes in larger denominations in line with inflation trends.”

The RBZ has said will continue to drip feed the market with new notes.

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Byron Adonis Mutingwende