Skip to main content

RBZ to lift lending restrictions this week

 



RBZ to lift lending restrictions this week


• As investigations confirm the existence of detractors abusing the  Forex Auction System.


Brian Rungano Temba 



Reserve Bank of Zimbabwe Governor Dr  John Mangudya has confirmed that the recent restrictions on bank lending facilities are going to be reviewed this week.


This follows thorough investigations by the Financial Intelligence Unit which confirmed suspicions that the Forex Auction System was being abused by currency manipulators in a process called Currency Attack.


In an interview with a local weekly publication, Dr Mangudya said that a review of the moratorium is on the way most likely this way as the Bank is in the process of remedying the situation.

"The suspension will be reviewed next week. What we have found out is what I have told you, that other corporates  were heavily borrowing from the markets or from the banks for the purposes of using that money to purchase their products and manipulating the exchange rate, which is called currency attack," said Dr Mangudya. 


The RBZ boss said that investigations revealed that the activities were depreciating the currency so that the culprits can make a profit through repaying the loans at a negative interest. 

"They make a profit from borrowing because the adjustment  in the exchange rate is higher than the interest the bank will get. This is why the interest rates route was never going to work for these guys," explained Dr Mangudya.


He also dismissed International Economist Steve Hanke's prescription for the problem as futile in the case of Zimbabwe which has a conscious and highly adaptive black market.

Steve Hanke had written in one of his recent articles on the Zimbabwean Economic situation that interest rates need to be hiked to 166 percent.


Said Dr Mangudya, "Even if you put 166 percent, they will send the parallel market rate to much higher than the value of the interest. By doing so, you continue to chase your own tail because they are moving the target. Because their job is to attack the currency."


The creation of an opportunity to derail the nation has been fully blamed on banks and RBZ who have seemingly entertained and abetted these shenanigans through inaction.


The Central Bank Chief assured the nation that further investigations will be done to root out the source of funds flooding the market.  

"Are they any crypto currencies in the economy which are being created or is there someone who is not the central bank or the banks. So that at least we move the blame from the banks and RBZ to those other people," he added.


Source: TateguruTv.com

Comments

Post a Comment

Popular posts from this blog

After 23 years, UK-ZIM relations thawing

 #SundayMussings  Prof. Jonathan Moyo It's International Relations 101 that a penchant for and infatuation with trivialities is not part of diplomacy, it's trivial pursuit. With this in mind, one does not have to hold a brief for anyone to understand that the coronation of King Charles III was essentially a showcase of an archaic and obnoxious tradition of hereditary rule - frowned upon in most parts of the world now under republican rule of one sort or another, while still a big deal in the United Kingdom of once upon a time, Great Britain - that dates back some 1,000 years ago. There’s therefore nothing geopolitically significant or even interesting about that primitive culture, where someone called Charles was crowned head of state by virtue of his birth at a ceremony where "His Majesty's Government" had no qualms about displaying the full repertoire of imperial loot like the stolen African Star and majestic gold from former British colonies, many of whose lead...
3 comments
Read more

In defence of Lindiwe Sisulu - SA Constitution not Sacred, Judges not demi-gods

            Professor Arthur Mutambara The SA Constitution is not Sacred and SA Judges are not Demigods.   By Arthur Guseni Oliver Mutambara 13 January 2022   Minister Lindiwe Sisulu penned an opinion piece on 7 January 2022 titled: ‘Hi Mzansi, have we seen justice?’  It was quite a refreshing critique of the challenges confronting South Africa.  Sisulu’s right to express herself and the content of her remarks must be vigorously defended without equivocation or ambiguity. On 8 January 2022, soon after I read the opinion piece, I publicly expressed the following remarks: ‘Wow, what a piece by Lindiwe Sisulu. I am pleasantly surprised that some in the ANC still get it and are prepared to articulate it eloquently. The issue is how to get such incisive thinking to influence the ANC and the country's direction. Is it a lost cause?’ I stand by these utterances. There has been quite several articles and remarks attacking Minister Sisulu. The ba...
1 comment
Read more
LAWYERS DEMO : DELIVERY OF JUSTICE OR PROTECTING THE CASH COW ?   By Hosia Mviringi 31 January 2019 On 29 January 2019 the nation woke up to the news that Lawyers under the banner of the Law Society of Zimbabwe was demonstrating against lack of or misdelivery of justice in the Courts in Zimbabwe. I write this article with a heavy heart knowing that my brother is a loyal member of the fraternity.I will try to be professional and speak my mind. What baffles the mind is the fact that the Lawyers are officers of the same Courts which they have served under the Law Society of Zimbabwe in defence of the accused for many years since independence.They have not seen this so called misdelivery of justice until only yesterday after the violent demonstration of the 14th of January 2019. What has changed now to warrant the demonstration by the Lawyers against the same Courts to which they have served or are serving as officers and partners ? Lets try to unpack the conundrum. Soon...
3 comments
Read more