Reserve Bank of Zimbabwe’s (RBZ) interventions rescued the economy from collapsing, governor John Mangudya said this morning as he defended the bank’s undertaking of quasi fiscal activities.
RBZ has been accused of engaging in quasi fiscal activities that were blamed for fueling hyperinflation which was tamed at the inception of the multi-currency regime in 2009.
Appearing before the parliamentary portfolio committee on Public Accounts, Mangudya said the central bank was not going to watch as the economy crumbled without playing its role of helping companies and individuals needing money to finance projects of national importance.
“We are helping the country in terms of procuring fuel, drugs, electricity and food commodities, through getting lines of credits to the banks who are giving out the loans to the companies to help to sustain the country. These are not quasi-fiscal activities,” he said.
“Fuel companies like Total, Zuva and Sakunda are some of beneficiaries of the funds as they are importing fuel to the country, through the loans they are getting from banks. We have individual businessperson like Kudakwashe Tagwirei who have also benefited through the help of RBZ.”
Committee chairperson Tendai Biti had questioned whether RBZ had stopped quasi fiscal activities.