By Derick Tsimba
Government’s new cash injection amounting close to a billion dollars to be injected into the economy is expected to turn around the country’s fortunes by boosting the circulation of cash which had now been limited to Real Time Gross Settlement (RTGS) transactions.
Given that enough cash comes into play, prices are expected to come down owing to the relaxing of the multi-tier pricing system which was now placing different extra price charges on coins and electronic transfers.
As alluded to by His Excellency, President Emmerson Mnangagwa in October this year whilst addressing the Second Zanu-PF National Youth League Assembly meeting at the party’s headquarters in Harare. Every country deserves to be in control of its own currency for posterity. The success of Zimbabwe’s economic policy should be hand and glove with the control of its own currency.
The Second Republic since 2017 has been putting in place economic fundamentals to aid the stabilisation of the economy and to set it back on its feet.
With reference to The Herald dated, 01 November 2019, the Reserve Bank of Zimbabwe (RBZ) indicated that it would be injecting $1 billion cash into the economy over a period of six months. The money injection should result in a reduction of the demand for cash resultantly causing prices to come down as well.
Cash injection should result in an improvement of the operations by the informal sector where only cash transactions were preferred. Customers have welcomed the availing of cash by the central bank as they were forced to seek cash through extensive measures such as overnight bank queues for them to access cheaper products sold for cash only.
The extra supply of cash will serve a huge blow to cash traders. A significant change should be seen on the market from cash dispersal by banks which had been limiting cash to small daily allocations.
Zimbabwe should soon be capable of printing and managing its own currency just like any other country. The rest of the countries in the world print money for circulation in their economies and Zimbabwe should thrive to do the same. RBZ ability to inject more cash into the economy indicates that the country has taken on the path to economic recovery.
Going forward, Zimbabweans should learn to have confidence in their own currency and use it as a medium of exchange. The culture of resorting to the sale of cash to highest bidders for speculation continues to put pressure on Governments efforts to have a stable currency for citizens.
The banking system should be utilised in such a way that businesses resort to banking daily earnings in banks. A culture of banking ensures that money is kept in circulation and prevents hording and eventually, losses through home invasion theft.
Success of these policies being implemented by Government can only materialise through the support of all people of Zimbabwe in general. Government is putting in place economic measures of which if adhered to will result into the turnaround of the economy.
This can only happen if all Zimbabweans put their country’s interest first.
