The Reserve Bank Of Zimbabwe (RBZ) is set to release a 100 dollar bond note. A document is in circulation about the features that it will have. This development comes after RBZ announced new regulations by the Monetary Policy Committee to curb inflation.

The features include a watermark of the Zimbabwean bird and it will be brown in colour.

The release of the new note is a reflection of just how bad the inflation in Zimbabwe is. The note will not be able to buy you USD1. Some people have expressed in their comments on social media that they fear this path will end in bigger notes being printed with time and landing back in the terrible situation we were in back in 2008.

History is repeating itself. Yesterday RBZ effectively introduced the Bank forex rate, and now higher currency denomination. With the parallel rate projected at RTGS500 to US$1 and annual inflation at over 100 by year end, even higher denominations are bound to be introduced.

— John Gadzikwa (@jgadzikwa) April 6, 2022

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The FIU froze the accounts of Ceribrian TIA Transervet, Powerspeed investment Private (Electrosales), Halsted Brothers and Enbee Store with immediate effect.

FIU director-general Tichafa Chigaba said:

“As we carry out further investigations on possible money laundering relating to the funds, you are directed to freeze the account with immediate effect and you shall not process any withdrawals or transfers from the accounts, unless with the specific approval of the Unit. You should, however, allow deposits or other flows into the account. You shall immediately report to the Unit any deposit or other inflow into the account as well as any attempted withdrawal or transaction from the account.”

“Please acknowledge receipt of this directive in writing confirming that you have frozen the account and confirming the account balance as at the date of freezing,”

This is not the first time that RBZ has accused companies of money laundering.

In 2021, the government introduced Statutory Instrument (SI) 127 of 2021 which seeks to regulate foreign currency exchanges.

SI 127 of 2021 prohibits business operators from charging above the official exchange rate and empowers authorities to punish those that refuse to take the Zimbabwe dollar for local transactions

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The current state of the Zimbabwean economy is no secret. From an almost inexplicable 1:1 bond note to USD exchange rate to 200:1 +, this is just one of the tell tale signs of an unstable economy. A couple of moves have been made by the government and looking back, its now adding up.

Now you are probably thinking of all those times Zimbabwe’s economy analysts and other reputable sources stated that Zimbabwean was headed towards greener pastures. Eddie Cross issued a statement going in depth on how the economy of Zimbabwe was positioned in a way that it was finally set for stability. The International Monetary Fund  (IMF) seemed to back up those statements stating that Zimbabwe’s economy was set to grow more than they had previously reported. All this was said just last year.

On the contrary, other reputable media sources (Bloomberg among others) shared detailed articles of the Zimbabwean economy stating that it was on the verge of collapsing.

So what’s the real deal?

Well, lets take a look on the ground.

Some of the steps taken by government to date

The government has announced various measures from the time the statements on the economy being headed in the right direction were made to date. Now, looking carefully at how far we have come, the economy seems further from the “stability” that has been spoken about.

Here are some of the events that have taken place thus far that we will soon dissect to get a clear position on where we are as a country.

• Mthuli Ncube announces 50% duty on car imports is payable in Zim dollars.
• Announcement of $50 withdrawal at bank rate for Zimbabweans
• $50 withdrawal for general public halted

Other policy changes were stated in the 2022 Monetary Policy.

Complete 2022 Monetary Policy – DOWNLOAD HERE

A sign of a crumbling economy?

The aforementioned are just but a few measures taken by the government between 2021 and 2022. However, why did retractions or alterations have to be made on previously established policies? While changes are allowed, in our case this could be the tell tale sign of a plummeting economy.

Why?

For starters, before the announcement on duties on car import being payable in Zim dollars consider the prevailing situation. ZIMRA was experiences a huge decline in revenue coming in from vehicle imports due to high duty fees. So…no/not as much money as before. A change had to be made, right? If at least half the duty fees is payable in Zim dollar that seems incentive enough for more car imports to take place and more (seemingly much needed) money flows in.

How about the $50 withdrawal at bank rate which has now been reserved for pensioners, senior citizens and vulnerable members of society? Is it possible that in addition to the government trying to limit the people profiting from the arrangement, there also just could be less money available to continue providing the $50 withdrawal limit to the public? Could that be the same reasoning that might have lead to the further limits on mobile money transactions?

The Zim dollar continues to deplete against the USD. However, reports from local based media continue to point to a growing Zimbabwean economy so we might not get to the point where our currency is exhibited in British museums again, right?

The post New Monetary Policy: Tell Tale Signs That The Zimbabwean Economy Is In Shambles? (breaking down Monetary Policy 2022) appeared first on Provoker Magazine.

New RBZ Measure 

RBZ Governor Dr John Mangudya in the latest Monetary Policy Statement announced an increase in transaction limits on mobile banking.

The increases are as follows:

• Person to Business : ZW$20 000 to ZW$25 000 per transaction with a maximum limit of ZW$100 000 per week
• Person to Person    : ZW$5 000 to ZW$10 000 per transaction with a limit of ZW$70 000 per week

In addition to transaction limits, the RBZ also announced cash withdrawal limits for the banking public which is from ZW$2000 to ZW$5000 per week.

We get why this might be done…but

From past similar decisions, we can deduce that transaction limits are put in place to combat the current black market money activities which have a detrimental effect on the economy when left ungoverned. However, the measures can prove to be a disadvantage for the ordinary person who is paid electronically and might no longer be able to buy essential all at once.

The limits on mobile money proved to be a challenge in the case of the Zimbabwean hero who jumped into a fire to save strangers. The public was moved to cover the hospital bills, however, many weren’t able to continue contributing as the recipients ecocash had reached its weekly limit.

What do you think could be done about this money situation?

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The central bank has announced that it will now allow individuals to be able to purchase small amounts of forex from bureaux de change at the auction rate.

These news comes after the nation received close to a million dollars from the IMF.

Up to now this privilege was only reserved for selected companies.

Just like anything in Zimbabwe, there is a catch, and individual can only purchase a maximum of US$50 per week, and all that is required is our identity card to access the facility.

You can downlod the RBZ’s full statement here.

This is great news, right?

The post Breaking: Ordinary Zimbabweans can now buy Forex at Bank Rate, RBZ Announces appeared first on Provoker Magazine.

A new issue has been raised and citizens still seem unhappy with the RBZ’s decision. An announcement was passed that a new note is now in circulation. This note is the $50 bond note.

View the official statement below:

Some Zimbabweans were displeased by the release of this new note saying that it’s yet another note that can’t even make meaningful purchases. For instance, a loaf of bread generally costs the equivalent of US$1. Gone are the days where you could walk into a store with just a single note (local currency) and leave with bread and a few other necessities.

View similar sentiments below:

In SA the biggest note is 200 rands. The price of bread is 15 rands. You can buy at least 13 loaves from that one note. Here in Zimbabwe you can't buy half a loaf from the biggest note (ZWL$50). #ZimbabweanLivesMatter

PS: I saw this on the green app and had to copy it here.

— Prince Gora (@goraprince15) July 6, 2021

Mbuya couldn’t even be a dollar.

Kana mudzanga havasi kutenga.

Hloniphani idlozi.

— Thabani Mpofu (@adv_fulcrum) July 7, 2021

So why was this move necessary?

Well, other citizens drew attention to a previous explanation of the matter. Watch the video below:

So long story short, “it’s for easy of change.”

What are your thoughts?

Let us know in the comment section below.

The post Here’s why the new ZW$50 was made and is already in circulation appeared first on Provoker Magazine.

An image was circulating on social media yesterday. Two individuals were caught hugging by the RBZ “high-definition CCTV” cameras. This was so disturbing to the extent that it lead to the following official press release statement by the RBZ:

View the controversial images below:

People have commented disapprovingly on this press statement. Others suggested that the RBZ should be handling more pressing issues, for example, dealing with the 18 foul companies they recently exposed.

What are your thoughts on this?

Let us know in the comment section below.

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Some businesses were able to minimise losses by up to $5.5 million since they began using the foreign exchange system. However, other business are said to have been abusing this system. Such businesses have been exposed by the RBZ and will be facing the necessary penalties.

View the official RBZ statement pertaining to this matter below:

When it began,the foreign exchange system was criticised heavily. Some of the criticism came following the release of the companies that were benefiting from it. Alex Magaisa was one of the people to have criticised the list.

What are your thoughts?

Let us know in the comment section below.

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Speaking in this regard yesterday, Central Bank Governor, John Mangudya, affirmed that this move would aid economic growth. He added that the bank policy rate at 40% and the interest rate on the Medium Term Accommodation Facility (MBA) at 30% per annum will be maintained.

In addition to the above, Mangudya gave the following statement:

“(The RBZ) approved a facility of ZW$500 million for term finance for micro, small and medium enterprises which the MSMEs will access from banks and micro-finance institutions at 30% per annum for purposes of enhancing production and productivity across all the sectors of the economy; and reaffirmed its position to support bureaux de change with foreign exchange requirements to support MSMEs which need foreign currency for their various productive requirements,”

The Governor reiterated the stand point of the Monetary Policy Committee (MPC) brought up at a meeting held last week. They were pleased with the reduction of the inflation rate from 240, 1% in March 2021 to 194% in April 2021. As a result the MPC expressed their commitment to working to sustain this dis-inflationary path.

This loan facility will be accessed through various  financial institutions.

What are your thoughts?

Let us know in the comment section below.

The post Good news for Small to Medium Enterprises as RBZ approves $500 million loan facility appeared first on Provoker Magazine.

Alex T Magaisa, ‘former adviser of  a PM OF Zimbabwe and to the constitution making team,’ shared the following remarks:

“The Reserve Bank Of Zimbabwe announced a list of what it called the top 100 beneficiaries of the Forex Auction System for the 1st 8 months. A good move you would think, except it’s incomplete, vague and misleading. Much remains obscure in the bottom part of the list.

2. The so-called top 100 beneficiaries only account for 45% of the total forex that was sold. The bulk of the forex (55%) went to “other companies and individuals”. Who the beneficiaries in this shady category are is as clear as mud. It raises questions.

3. It is disingenuous and deceptive for the central bank to purport to be transparent when its list accounts for a small fraction of the bigger picture. It’s like inviting guests to a dinner party and announcing that the party is over after the starters!

4. If anything, the RBZ list raises more questions than there were before it was published. Because now we are all curious to know who the “other companies & individuals” who got the bulk of the money are. Who are they & how much of this larger share of the cake did they get?

5. They will probably say the remainder are outside the top 100. This is difficult to believe. But even if that is the case, may they publish the full list in the interests of full disclosure & transparency. They started it. They might as well finish it & remove all doubt.”

What are your thoughts on this criticisms?

Let us know in the comment section below.

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