ZIMSEC O Level Commerce Notes: Money and Banking: The Reserve Bank of Zimbabwe
- It is the banker’s bank and owned by the
Government of Zimbabwe. It is also known as the Central Bank.
- A Central bank is a national bank that provides financial and banking services for its country’s government and commercial banking system, as well as implementing the government’s monetary policy and issuing currency.
- It issues notes and coins through commercial banks.
- A banker’s banks i.e it keeps minimum deposits for commercial.
- It acts as a banker to the government i.e revenue is paid into it and payments are met out of it.
- It carries out the government’s monetary policy by controlling interest on debt and the value of the Zimbabwean dollar.
- A lender of last resort to commercial banks and discount houses.
- It acts as a clearing house tin settling interbank debts.
- It rations foreign currency and controls the issue of foreign currency.
- It acts as an advisor to the government on economic issues and ways of controlling inflation.
- Sells Treasury bills on behalf of the government.
- Withdraws and replaces worn out notes and coins.
- A custodian of the nation’s reserves of gold and foreign currency or foreign assets.
- Keeps state departments accounts.
- Controls and regulates the supply of money.
- Manages the national debts.
- Offers banking services to commercial banks.
- Controls the lending rate.
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