Harare – Launching the Transitional Stabilisation Programme (TSB) in the capital recently, Finance and Economic Development Minister Mthuli Ncube said Government will from January 2019, revive the issuance of Treasury Bills (TBs) through an auction system as part of monetary policy operations to influence liquidity developments in the economy.

This comes at a time the stock of outstanding as at June 2018 standing at $6.7 billion, with a maturity value of around $8.3 billion.

During the period 2017 to June 2018 Government issued TBs and bonds amounting to $4.3 billion to cover the financial gap.

Of the $4.3 billion issued, $2.9 billion accounts for 2017 issuances, whilst the remaining $1.3 billion was issued through during the period to June 2018.

“In this regard, Government will from January 2019, revive the issuance of TBs through an auction system. In addition, Government will under the TSB, revive the issuance of bond through the development of a secondary bond market beginning 2019.

“Under the new thrust, the practice of settling Government obligations using TBs will be discontinued, with such bills only issued to raise resources for financing deficits and cash flow timing gaps arising from Budget approved by Parliament,” said Ncube.

 The Treasury boss said the Reserve Bank, as a banker to Government, will only issue TBs via issuance of a Treasury Bill Issuance Note by an Accountant General.

“On maturity, of the TBs, the central bank will also be given authority, in writing from the Accounting General to debit the Government Account.

“This will further improve accountability for disbursements made from public resources while enhancing scrutiny over and monitoring the deployment of borrowed funds, maturity profiles and sustainability of the debt portfolio.”

RBZ governor is on record saying he is worried about the creation of money through the issuance of Treasury Bills and loans which cause a mismatch between local RTGS balances and nostro accounts balances.

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