Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mushayavanhu has assured the nation that the central bank has full control over money supply, signaling confidence in maintaining exchange rate stability.
Speaking recently Dr. Mushayavanhu emphasized that measures are in place to ensure deposits do not rise significantly from the current ZWL 10.7 billion, while reserves are set to grow from mineral royalties.
The central bank has moved to curb credit growth, a key factor in increasing money supply.
“We have put in place measures to control further credit creation by banks,” Dr. Mangudya said, noting that the recent decision to raise reserve requirements and hike the bank policy rate would slow credit expansion.
These steps, he explained, are part of a broader strategy to keep money supply in check while boosting reserves. With these controls in place, Dr. Mangudya questioned the likelihood of exchange rate fluctuations, expressing confidence that stability would be maintained.
“Money supply will remain under control; reserves will continue to go up. So what reason will the exchange rate go up? And for what reason should we then not have stability?” he concluded.
This comes as the RBZ continues its efforts to stabilize Zimbabwe’s economy amid global and domestic financial challenges.
