Home LOCAL NEWS Mangudya, Mthuli Clash Over Fixed Exchange Rate

Mangudya, Mthuli Clash Over Fixed Exchange Rate

‘New notes, coins won’t cause inflation’
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya (right) addresses delegates at a mining sector breakfast meeting in Harare yesterday while Finance and Economic Development Minister Professor Mthuli Ncube looks on

The Reserve Bank of Zimbabwe Governor (RBZ) John Mangudya and the Minister of Finance and Economic Development Mthuli Ncube are at each other’s throat again, this time over the Zimbabwe dollar exchange rate peg.

Mangudya unilaterally fixed the exchange rate at 25 to the U.S. dollar as the country entered a coronavirus lockdown in March, ignoring the recommendations of the Monetary Policy Committee and Ncube, a Bloomberg report claims.

Zimbabwe had been using a managed floating exchange rate system before Mangudya’s unilateral decision.

Reports suggest that this is not the first time that Mangudya and Ncube have clashed over policy issues.

Currently black market rates for the Zimbabwe dollar range between 75 and 90 per unit of the U.S. currency, a development that mirrors the grim 2008 era.

The imploding economy prompted the politburo of the ruling Zimbabwe African National Union-Patriotic Front (ZANU-PF) to summon Mangudya and Ncube last week to explain why the economy was deteriorating, the Zimbabwe Independent newspaper said.

Bloomberg could not get responses from both Mangudya and Ncube while calls to the deputy finance minister and finance secretary weren’t answered as well.

Zimbabwe reintroduced its own currency in 2019 after abandoning the multi-currency system that was dominated by the US dollar.

Trending On Zimetro. . .

Prophet Passion Java buys wife a 340K Lamborghini Urus 2020 custom made as a birthday gift: Video

So yesterday was Prophet Passion Java’s wife’s birthday. Lily Java turned 30 yesterday and we put an article about that. Below is a little catch-up…

Prophet Passion Java buys wife a 340K Lamborghini Urus 2020 custom made as a birthday gift: Video

The beautiful and humble soul has turned 30 years today and we are so happy to celebrate with her. She is also happy about her unborn baby which they are…full details

Trending On ZIMetro News. . .

  Conman ‘Teemak’ now in therapy; bishop father to pay off his Ponzi scheme victims HARARE – A 23-year-old man who duped dozens of Zimbabweans dotted around the globe through a Ponzi scheme is currently undergoing therapy, his sister has said. Conman 'Teemak' now in therapy; bishop father to pay off his Ponzi scheme victims Namatai Marygrace Chipunza took to Facebook in the aftermath of news reports exposing the self-proclaimed millionaire Taona Oswald Chipunza – known among socialites as Teemak...read more