Highlights of John Mangudya’s Zimbabwe Monetary Policy Statement

Reserve Bank of Zimbabwe governor John Mangudya has  outlined a raft of measures which he hopes will kick-start the ailing economy.

♦ He says the economy will grow 5 percent, up from the earlier projected 4.5 percent

♦ All offshore investments required to repatriate all proceeds to Zimbabwe

♦ Banks with immediate effect directed to separate Nostro Foreign Currency Accounts and Real Time Gross Settlement Foreign Currency Accounts. They have up to October 15 to implement directive. Move to encourage exports and remittances

♦ Inflation to remain below 7 percent

♦ Following developments in the fuel and retail sectors, RBZ directs that with immediate effect all foreigners will pay for goods and services in Zimbabwe in foreign currency

♦ Tobacco outperformed initial projections. This compensated for the poor maize output. There was also significant growth realised in gold, platinum and other minerals

♦ The economy has remained “resilient” in face of various pressures

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