A currency that is not

A few days ago in his Monetary Policy Statement the Governor of the Reserve Bank of Zimbabwe gave us a new currency, albeit with much protestation that it’s not really a currency. Indeed prior to the Monetary Policy government officials had been quick and vehement in their denial of a new currency.

But we eventually got a new currency, called RTGS Dollars, whatever that means. The “new” currency is to trade “freely” with other international currencies, unlike the bond notes which were fatally and foolishly fixed at 1:1 withe USD.

According to the RBZ this move, adequately explained here by NewZWire, will solve some of our problems. I find it hard to see how this will be achieved.

Earlier today media sources reported that the currency was to start trading at RTGS $2.50 to the USD, a rate the RBZ came up with for no clear reasons. I’m reliably informed there wasn’t any trade at all.

The black market, whose death knell was supposedly sounded by the Monetary Policy, remains unruffled. At close of day today the rates had slightly risen to around RTGS $4.1 to the USD if my social media feeds are to believed.

Yet another baffling move from Mangudya- who famously promised to resign if the bod notes failed.

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