Mthuli Ncube confirms RBZ will print more money

Mthuli Ncube

Finance Minister, Mthuli Ncube has finally confirmed that the RBZ will print money as part of several measures to resuscitate the economy.

Eddie Cross had already announced it but some needed RBZ Governor, Mangudya’s word or Finance Minister, Mthuli Ncube’s word to believe it. Announcing on Twitter, Mthuli Ncube:

Global Financing Facility discussion: I explained Zimbabwe’s $18 billion economic stimulus package. The package includes a combination of fiscal measures and budget re-prioritization, and monetary measures in the form Quantitative Easing and lowering lending rates.

Don’t get baffled by the phrase “Quantitative Easing”. Its just a hidden way of saying “printing money”. Quantitative Easing is a controversial practice that is used world over in countries like United States and Britain to cure the economy by increasing economic activity.

As the money supply increases as a result of Quantitative Easing, banks will be encouraged to offer loans at ridiculously low interest rates to encourage borrowing, hence an increase of economic activity.

Quantitative Easing should work to resuscitate the economy in countries that have strong economies but looking at Zimbabwe’s economy one can only have doubts. You can read this article on the likely effects of printing money by the RBZ

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