RESERVE Bank of Zimbabwe (RBZ) governor John Panonetsa Mangudya yesterday the Apex bank has injected new bond notes for tobacco growers which are matched by foreign currency earnings, FinX reports.
Dr Mangudya said that the central bank continues to exercise restraint on the release of cash into the market however bond notes amounting to $12 million had been released in line with demand for the local currency.
Mangudya revealed that since 2016, a total of $450 million bond notes have been released to the market.
Bond coins and bond notes in circulation in the economy account for around 5% of money supply.
“But following the start of the tobacco marketing season, new notes were injected to enable growers to withdraw cash.”
While Mangudya says that he is exercising restraint on the release of cash into the economy, there is a section which believes that the central bank is not helping the economy by not injecting additional cash.
Speaking on inflation, Mangudya said the central bank is targeting inflation to end the year at 15% with deceleration expected to start around October.