Zimbabwe: Banks Raise Red Flag Over Policies

Zimbabwe's banking sector has singled out policy inconsistency as the biggest threat to its sustainability, citing conflicting statements on currency reforms.

Bankers' Association of Zimbabwe (BAZ) president Webster Rusere told Standardbusiness in an interview last week that government's communication around the re-introduction of a local currency was confusing.

"I think the biggest challenge facing the banking sector is policy inconsistencies," he said.

"For example, you cannot say that you will be introducing a new currency in 12 months only for you to do it way earlier.

"So, I think we need some policy consistency."

In June, the government made the real-time gross settlement (RTGS) and bonds notes as well as coins the sole legal tender, ending a decade of dollarisation.

The move took many by surprise as the government position was that the re-introduction of a local currency was months away.

Last month, Finance minister Mthuli Ncube told Bloomberg that the Reserve Bank of Zimbabwe would soon issue new notes and coins to replace the quasi-currency.

However, a few days later Ncube was quoted saying the country would not introduce new notes. He said the Zimdollar would remain constituted of bond notes and coins, RTGS and mobile money... Read more on All Africa

Source: All Africa