Gideon Gono's mid-term monetary policy out next week

Published: 09 August 2013

RESERVE Bank of Zimbabwe Governor Dr Gideon Gono will next week present his mid-term monetary policy statement expected to propel growth in a post-election era.

Addressing the Bulawayo business community on Wednesday, the central bank governor said the monetary policy statement would answer questions business people had.

"I will be presenting the mid-term monetary policy statement next week, and if you have any questions in that regard, it will be answered in the monetary policy," he said in response to a question from the floor on capitalisation levels of the banking sector.

The mid-term MPS was initially supposed to be presented last month after Finance Minister presented his fiscal policy statement.

However, the presentation of the monetary statement was deferred to after the harmonised elections.

According to outgoing Finance Minister Tendai Biti, the majority of commercial banks had met the minimum capitalisation levels stipulated by the RBZ.

He said 12 out of the 21 operating banking institutions were as at 31 March 2013 in compliance with the 31 December 2012 prescribed minimum capital requirements of $25 million while five were at 50 percent compliance.

Four of the 21 operating banks were at less than 50 percent compliance level.

The monetary policy statement is expected to come up with measures that give confidence to markets and promote the export sector, attract foreign direct investment, and diaspora inflows to improve liquidity on the market.

Since the adoption of a multi-currency system in February 2009, liquidity constraints have been one of the reasons hindering economic progression to competitive levels.
- chronicle