The Reserve Bank of Zimbabwe (RBZ) has warned that financial institutions criticising its monetary policy against excessive currency printing will be sanctioned.
RBZ governor, Dr. John Mushayavanhu, said on Wednesday there will be no reversal of newly introduced monetary policies, Zimbabwe’s Business Times reports.
“If printing money could make nations prosperous, then there would be no nation, which is a third-world nation,” Mushayavanhu said.
“We have learnt from past experiences that it does not help to print money. Certainly, not under my watch, it’s not going to happen,” he added.
Volatile market
Zimbabwe’s currency rate has been increasingly volatile due to market speculation and negative inflation expectations, and annual inflation has rebounded, rising from 26.5% in December 2023 to 34.8% in January 2024, then to 47.60% in February and 55.3% last month.
Zimbabwean banks have warned that a tight policy stance would derail economic growth as it restricts lending to productive sectors of the economy.
The central bank chief, however, insists “unscrupulous dealers” resisting the policy measures would be dealt with.
Zimbabwe recently introduced several policy measures in response to domestic currency depreciation and inflationary pressures, including the introduction of a new currency, the ZiG.
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