RBZ maintains key rate at 130%, calls for more ZWL taxes

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HARARE – The Reserve Bank of Zimbabwe has maintained its key bank policy rate at 130% as it continues to stay the course of tight monetary policy.

The Medium-term Bank Accommodation Policy was also maintained at 75% and will be reviewed in line with with inflation developments from time to time.

According to the Monetary Policy Committee Dec 1 resolutions , the RBZ committed to safeguarding the current macro-economic stability by staying the course of tight monetary policy while taking measures to cushion the economy from global risks and the effects of the El Nino weather phenomenon.

While there was no effort in the recent 2024 National Budget statement to encourage the use of local currency through taxes, the RBZ still maintains that Government needs to increase the proportion of taxes settled in ZWL to sustain the optimal mix of dual currencies.

The central bank also called on Treasury to leverage diaspora remittances for development as part of a broader package of measures to cushion the economy from recurring global shocks. Diaspora remittances made up 16% of the foreign currency inflows as of October 31, which stood at US$9.23 billion. ” The MPC noted the strong foreign currency generation capacity of the country despite emerging global risks, with receipts increasing 2.3% to US$9.23 billion.”

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