Acting RBZ governor Dr Charity Dhliwayo
The Reserve Bank of Zimbabwe (RBZ) is currently gathering input from stakeholders for inclusion in the first half monetary policy statement which it is expected to present before the end of January, it has been learnt.Former RBZ governor Dr Gideon Gono last presented the monetary policy in January 2013 and failed to make the second presentation as required by law due to disruptions brought about by the general elections held in July last year.
The RBZ Act requires that the central bank presents the monetary policy statement bi-annually.
“It is definitely on this month, before January 31,” an RBZ official told New Ziana.
The official however could not give a specific date for the presentation, which acting RBZ governor Dr Charity Dhliwayo will deliver.
The RBZ has already written to a number of stakeholders including the Bankers Association of Zimbabwe, the Zimbabwe National Chamber of Commerce and the Confederation of Zimbabwe Industries requesting their input.
The RBZ has the onerous task of restoring confidence, not only in itself as the country’s top bank, but in the financial sector as a whole.
With the financial sector still shaky due to continued closure of banks, the central bank is expected to announce measures concerning the capitalisation of banks and ensuring stability of the financial sector.
Finance Minister Patrick Chinamasa said last December the existing capital thresholds for banks should remain unchanged “in order not to strain” the sector.
A number of banks are already struggling to meet the $120 million capital threshold. The RBZ is also expected to attempt to address the liquidity crunch that is stalling economic development through introducing a number of measures that will boost confidence in the banking system such as the re-introduction of the interbank market.
Already government has made public plans to recapitalise the apex bank to the tune of $200 million as well as taking over of its $1.35 billion RBZ debt as confidence boosting measures.
While adoption of multi-currencies largely reduced the role of the central bank to a by-stander while liquidity challenges ravaged the economy, its capitalisation is expected to once again mark the return of its influence and reinforce its centrality in the financial sector.
In the monetary policy statement, the RBZ is also expected to act on bank charges and interest rates which have remained a point of friction between the public and banks since dollarisation in 2009.
Chinamasa warned banks against hiking bank charges when he presented the 2014 national budget, threatening to stipulate the rates and fees.
With the stiff competition in mobile banking, government has also instructed the RBZ to review the framework which guides the sector.
Analysts contend that other functions which have once again been thrown into the realm of the RBZ such as gold processing and exporting will restore its ability to play an influential role in the economy. – New Ziana.