RBZ injects $20m more notes to ease cash shortages

THE Reserve Bank of Zimbabwe (RBZ) injected an additional $20 million banknotes into cir­culation last week so as to boost the liquidity position of the country.
This measure is meant to ease cash shortages and much of the money injected by the RBZ was channelled to the People’s Own Savings Bank (POSB), which is used to distribute a lot of pensions.
This was said by Finance and Economic Development Minister Professor Mthuli Ncube in an interview on the sidelines of a familiarisation tour of the Insurance and Pensions Commission (IPEC) head office in Harare yesterday.
“In the last week alone, we have put in about $20 million. We targeted POSB specifically, but not exclusively because we know that a lot of our ordinary citizens are banking with them and it’s important that they have all the cash that they need,” he said.
Since the introduction of new notes and coins last month, about $120 million has been injected into the circulation.
The RBZ introduced new $2 coins and $2 and $5 notes following a surge in demand for cash in the informal sector which operates largely on a cash basis or offers discounts for cash.
Informal traders say this enables them to buy black market foreign exchange at a discount.
Turning to insurance and Pensions Commission (IPEC) management and staff, Prof Ncube said Government was aware of the work underway regarding the revaluation of pensions in light of currency changes in 2009 and this year.
He said Government will be supporting the insurance regulator to make sure industry players did the right thing.