Business

Ncube blocks Mangudya plan to introduce new Zim currency

President Emmerson Mnangagwa is reported to have been forced to intervene after Reserve Bank of Zimbabwe (RBZ) governor John Panonetsa Mangudya and his boss Minister of Finance Mthuli Ncube had heated exchanges. The two men are reported to have clashed over how to deal with the currency crisis and this has resulted in the delay of the Monetary Policy Statement (MPS). The MPS was expected to have been delivered in the last week of January or by the end of the first week of Friday.

According to the weekly publication the Business Times, President Emmerson Mnangagwa, actually met with Mangudya last night as he tried to resolve the impasse. According to sources who spoke to the Business Times, Mangudya is proposing the re-introduction of local currency as soon as possible.

Mthuli Ncube, on the other hand, wants to hold off on the reintroduction of a local currency arguing that it should only be introduced 12-18 months from now. According to Ncube, the best option at the moment is to liberalise the exchange rate. However, Mangudya is worried that such a move would result in the collapse of bank balance sheets as most banks were borrowing offshore for on-lending in RTGS. Mnangagwa and the government are yet to comment on the matter.

The government is reported to have postponed the re-introduction of a local currency after criticism from Former Finance Minister Tendai Biti and foreign diplomats.

agencies

Share

Recent Posts

Slain CCC activist Moreblessing Ali’s body to be buried this Saturday

Slain Citizens Coalition for Change (CCC) activist Moreblessing Ali's body is set to be buried… Read More

27th February 2024

Mliswa’s daughter arrested over drugs

Former Norton Independent Member of Parliament Temba Mliswa's daughter has been arrested for drugs. Confirming… Read More

27th February 2024

Lorraine Guyo’s Birthday: Mystery Boyfriend Steals Spotlight Amidst Speculation…PICTURES

During Lorraine Guyo's recent birthday celebrations, attention was drawn not only to the delicious treats… Read More

27th February 2024

Zimbabwean Musician BaTroy Crashes Gifted Car from Controversial Businessman Wicknell Chivhayo

BaTroy, renowned for his hit song ‘Shungu Dzemoyo Wangu,’ has been involved in an accident… Read More

27th February 2024

Tshabangu Denies Purported Recall, Says He Owns Chamisa Face

CCC's controversial interim secretary-general, Sengezo Tshabangu, has rebuffed claims of his recall from the party,… Read More

27th February 2024

Police launch man-hunt after man with 2 pistols threatening to kill Mnangagwa goes viral

The Zimbabwe Republic Police (ZRP) is appealing for information which may assist to identify and… Read More

26th February 2024