Business, RBZ reach agreement on currency stability

By Stanley James

The business community and the Reserve Bank of Zimbabwe (RBZ) have reached a number of agreements aimed stabilising the economy this year.

The Reserve Bank of Zimbabwe and leaders of the business community met on 21st this month to take stock and review price stability agreements made last year.

A statement released after the talks revealed the two parties agreed on macroeconomic stability models to be implemented during the course of the year.

The two parties also noted several positives that have been achieved within the economy, mainly reduction of inflation from a three digit figure to two digit levels.

 Another key milestone according to the statement is the rise in local manufacturing production coupled with an eighty percent local product stock.

On its part, government and the central bank resolved to implement policies towards strengthening the local currency.

According to the statement, the business community also reaffirmed commitment to ensure there is no abuse of foreign currency auction funds, desist from exchange rate manipulation and compliance with the Bank Use and Promotions Act.

The central bank also resolved to continue fighting inflation through tight money supply policies.

The two parties also agreed that the Financial Intelligence Unit should continue penalising currency manipulators and abusers of foreign currency auction regulations.

It was also agreed that continued dialogue between the authorities and business is important in stabilising inflation, foreign exchange rates and the economy in general.