RBZ Monetary Policy Committee makes resolution on obtaining macroeconomic and financial developments

The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe met recently to deliberate on obtaining macroeconomic and financial developments, and economic outlook.

The Bank Policy Rate is the benchmark interest rate that the Reserve Bank sets and expects banks to use when trading amongst themselves. It also influences lending rates and other variables in the market. An increase in the policy rate helps manage the amount of money supply in the economy to reduce inflation.

The amount of foreign currency an individual can take out of the country in cash has been reduced to US$2000.

This intervention is specific to cash and does not limit the amount that one can utilise outside the country using digital payment platforms (bank cards).

Limiting the amount of cash taken outside the country has been necessitated by the need to comply with global anti-money laundering and counter-financing of terrorism standards. Furthermore, this is consistent with the Reserve Bank’s strategy towards a cash-lite economy and promotion of digital payments.

Foreign currency receipts for January to August 2024 increased by 13.4% to US$8.4 billion”

Increased foreign currency earnings support the strength of ZiG and ensure price stability through increasing liquidity on the willing buyer, and willing seller foreign exchange market.

To allow greater exchange rate flexibility Deepening the willing buyer willing seller foreign exchange market will ensure currency stability.