STAFF WRITER
The Reserve Bank of Zimbabwe (RBZ) has maintained its tight monetary policy stance in an attempt to rescue the economy from its problems and control the excessive money printing.
RBZ governor, Dr John Mushayavanhu confirmed the development saying:
“If printing money could make nations prosperous, then there would be no nation which is a third world nation,” he said.
“We have learnt from past experiences that it does not help to print money. Certainly, not under my watch, it’s not going to happen.”
It coincides with the longest and strongest inflationary rebound ever witnessed in Zimbabwe.
The currency rate has been increasingly volatile due to market speculation and negative inflation expectations, and annual inflation has rebounded, rising from 26.5% in December 2023 to 34.8% in January 2024, then to 47.60% in February and 55.3% last month.
Dr Mushayavanhu’s remarks come as banks have also warned that a tight policy stance would derail economic growth as it restricts lending to productive sectors of the economy.
The central bank chief was adamant there won’t be any reversal of policy warning a “few unscrupulous dealers” resisting the policy measures that they would be dealt with.
The government recently introduced several policy measures in response to domestic currency depreciation and inflationary pressures, including the introduction of a new currency, the ZiG.
