Business - Featured - Finance - March 11, 2021

RBZ issues $400m Treasury Bills

By Staff Reporter

The Reserve Bank of Zimbabwe (RBZ) last week floated a tender seeking to raise $400 million through issuing a 270-day Treasury Bills(TBs) to fund cash flow management and government programmes.

In the recent 2021 monetary policy statement, RBZ Governor Dr John Mangudya said the bank would continue to implement a conservative monetary targeting framework in order to contain money supply growth, reduce pressure on the exchange rate and stem inflationary pressures in the economy.

RBZ has resorted to issuing TBs in a bid to raise funding to support key development operations amid concerns of lack of external credit support to meet Zimbabwe’s budgetary needs.

The central bank floated the tender, which was closed yesterday, through a public notice issued last Friday where it invited bidders from the financial services sector to subscribe to the TBs.

“RBZ on behalf of the Government of Zimbabwe hereby invites commercial banks, building societies, POSB (People’s Own Savings Bank) and IDBZ (Infrastructural Development Bank of Zimbabwe) to subscribe to Government Treasury Bill Tender amounting to $400 million,” said the monetary authority.

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