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Wednesday, May 29, 2024

Smaller United States Dollar denominations to be rolled out

Story by Stanley James, Business Editor

CONSUMERS are set for relief after monetary authorities announced plans to procure smaller United States Dollar denominations for the convenience of the transacting public.

For some time, consumers have been experiencing challenges due to the non-availability of smaller US dollar denominations.

The move has to a larger extent resulted in most of the consumers failing to get the real value for their money as they are sometimes given non desirable items such as sweets instead of change.

Resolutions of a Monetary Policy Committee (MPC) meeting held this Tuesday shows that central bank authorities resolved to procure the smaller denominations to address the current challenges.

The move is also being made after the MPC noted that there is a 70:30 currency mix of foreign and local currency in the economy due to an increase in foreign currency inflows.

To expand the value preserving instruments and widen their access to the public, the committee also resolved to complement gold coins with digital gold backed products.

The committee noted that by 10 March this year, over 31 000 gold coins had been sold, mopping up more than ZWL$25 billion.

Central Bank authorities therefore pledged to stay on course of a tight monetary policy to anchor exchange rate and inflation expectations.

The committee also noted that domestic economic activities have remained robust despite a slowdown in the global economy.

Other takeaways of the meeting include the reduction in the bank policy rate to 140 percent from 150 percent per annum with effect from the first of April and the further liberalisation of the foreign exchange market.

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