Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Panonetsa Mangudya has said foreign currency receipts between January and September this year amounted to US$6,09 billion compared to US$4,43 billion over the same period in 2020, representing a 37,8 percent increase.
Speaking to TechnopMag, the apex bank boss said money supply has remained under control with liquid financial assets in local currency
equivalent to US$1 billion against foreign currency holdings of about US$4,5 billion, comprising US$1,2 billion reserves under RBZ; US$1,7 billion FCA deposits in the banking sector and estimated US$1,5 billion circulating in the economy.
Dr Mangudya said there had been no recourse to central bank financing of deficit since last year due to continued fiscal sustainability. He added that Vision 2030 calls for complementarity of fiscal and monetary policy to create a conducive environment characterised by low and stable inflation, stable exchange rate and high economic growth rates.
Those objectives will need to be tackled from both the fiscal and monetary policy sides.
“The ongoing complementarity between fiscal and monetary policy has created accommodative monetary and financial conditions supportive of the strong economic rebound to 7,8 percent this year and above 5 percent in the outlook period,” he said.