By Davison Vandira
THE country’s monetary authorities are optimistic that the increased use of the Zimbabwe Dollar will sustain the current demand for goods and services and in return propel industrial production for the benefit of the economy.
The introduction of the Zimbabwe dollar was premised on the need to have financial sovereignty in the administration of the monetary policy and develop the country’s local production and export competitiveness.
Over the past two years, Zimbabwe has recorded increased domestic production owing to the central bank’s support of the local currency and bridging the forex gap with the Auction System which continues to bear fruit.
Despite inflation challenges, most of which are on account of external shocks, the monetary authorities are conscious of the Zimbabwe dollar’s high velocity in spearheading demand that in turn continues to stimulate industrial productivity.
“The Reserve Bank of Zimbabwe is committed to bringing exchange rate stability that’s why we are pursuing a tight monetary policy to make sure that money supply growth is contained, but at the same time we are excited about the local currency’s capacity in driving demand for goods and services which helps the economy in its growth aspirations,” said RBZ Monetary Policy Committee Member, Mr. Persistence Gwanyanya.
Industry is encouraging authorities to continue with measures to strengthen the Zimbabwe dollar to sustain current stability which is critical in the country’s journey towards vision 2030.
“As industry, we note that there is an increased usage of the local currency which is good for business continuity, however, moderation is needed to curtail the volatility which might affect the economy in the long term,” noted ZNCC President, Dr. Tinashe Manzungu.
In a show of confidence in the Zimbabwe Dollar, the government recently announced that taxes, duties, levies, and mining royalties, among other statutory obligations, can be paid using the local currency.