Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya revealed the 2018 Monetary policy. Some of the highlights included pricing of goods, cash shortages and foreign investment to name a few.
In the policy, Dr Mangudya revealed that individuals and businesses who use three-tier pricing or refuse electronic money will soon face arrest. According to the governor, this law is already in Parliament and is awaiting Senate approval.
The governor also said that Zimbabwe was going to continue using the multicurrency system until when the economy has sufficiently recovered. Mangudya insisted that Zimbabwe isn’t ready yet to introduce its own local currency. He added that it will take time dealing with cash shortages.
Other parts of the monetary policy included 99-year leases for land. The 99-year leases are given by the government to farmers who apply for land for agricultural purposes. Earlier this year, the government stopped the discriminatory practice of issuing 5-year leases to white farmers and has started issuing them with 99-year leases.
Dr Mangudya said,
“In line with the current economic dispensation’s aspiration to transform agriculture into viable business proposition and taking into account of the significant improvements made by the government on the 99-year leases to enhance the security of tenure of the lease and making it bankable and transferable, the Bank has agreed with banking institutions for them to accept the 99-year leases as security for accessing credit from financial institutions in line with the provisions of the leases.”
Download a copy of the 2018 Monetary Policy here.