RBZ to address prices, forex woes

The Herald

Farirai Machivenyika Senior Reporter
The financial policy to be announced by Reserve Bank of Zimbabwe Governor John Mangudya today is expected to be successful in the economy.

Speaking ahead of the Monetary Policy Statement yesterday, Dr. Mangudya said the statement will be designed to deal with the various challenges facing the economy.

"The Monetary Policy Statement will be issued tomorrow (today) and is aimed at addressing price and financial stability in the economy," said Dr. Mangudya.

"As you know, our responsibility as defined in the RBZ Act is to ensure price and financial stability, so that's what we will be addressing in the statement."

Dr. Mangudya said the RBZ would also address the foreign currency shortages that have seen the emergence of a parallel market for the greenback.

Zimbabwe is facing foreign currency shortages that have seen prices of basic commodities rising as companies struggle to raise money.

"We also need to deal with the foreign currency issue," said Dr. Mangudya. "As you know, demand for foreign currency is outstripping and it is a challenge that we have to address."

Dr Mangudya, a team from the International Monetary Fund (IMF), was in Zimbabwe for consultations ahead of the institution's annual meeting in Bali, Indonesia.

"The IMF team arrived in the country on Thursday for review meetings ahead of the IMF and World Bank annual meetings in Bali, Indonesia," he said. "We expect to also hold several bilateral meetings on Bali's sidelines of the meetings."

Zimbabwe has failed to accept payments from the multilateral institutions because of arrears in payments of previous loans and also due to the Western sanctions regime.

Government has, however, been engaging with the Bretton Woods institutions.

The arrears include $ 1.2 billion owed to the World Bank and $ 600 million owed to the African Development Bank (AfDB).

President Mnangagwa has prioritized re-engagement with foreign governments and multilateral institutions to assist in turning around the fortunes of the economy.

Zimbabwe intends to achieve middle income status by 2030, with the President's emphasis being on politics.

Several initiatives have been embarked on the growth of the economy.

These include creating a conducive environment for Foreign Direct Investment (FDI) and fighting corruption in all sectors of the economy.

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