The government called for patience as it works to develop a monetary policy that will bring confidence to the market and deal with critical issues to limit the effects of exchange rate fluctuations.
The government’s appeal comes at a time when it is conducting widespread consultations in order to formulate a political statement that comes with a set of measures that would stabilize the economy. In an interview with Sunday News yesterday, Deputy Minister of Finance, Economic Development and Investment Promotion David Mnangagwa said the government will undertake some currency reforms, with some reforms targeting exchange rate management systems that will come through monetary policy. Statement (MPS) in the next few weeks.
“At this moment we cannot give a definitive date on when Parliament might make an announcement, but we can expect it in the next few weeks. The pending MPS will be very pivotal as it aims to deal with critical issues that affect all Zimbabweans i.e. the government, the private sector and the general citizenry. No one is spared from the cascading effects of exchange rate fluctuations that lead to inflation.
“With this in mind, the monetary policy policy, which will introduce reforms in our currency and exchange rate management system, must be one that mitigates this sticky area that potentially threatens our positive growth path, and is henceforth carefully mapped out,” the deputy said. Minister Mnangagwa: “We are consulting widely, formally and informally, to ensure that the final product is one that will bring confidence to the market.”
He said the European Parliament would provide a concrete solution for a structured currency, as announced by President Mnangagwa.
“The President mentioned that we will have a regulated currency, this structure needs to be based on a sound foundation and this is a process that cannot be rushed. We are fully aware that we have an anxious market at the moment, with everyone waiting for the MPS, but we appeal for patience. Dep Min Mnangagwa said: “I will also advise market makers and market players not to take any extreme positions in the long or short term, as the government takes safeguards against loss of value.”