Increasing production key in exchange rate stabilisation: Govt

By ZBC Reporter

The government says increasing production levels across all economic sectors will ensure currency stabilisation for the country.

The Deputy Minister of Finance and Economic Development, Honourable Clemence Chiduwa told ZBC News in Masvingo this Saturday that it is key for the industry to focus on increasing production as this will earn the country foreign currency and stabilise the exchange rate.

“At the moment what we would want to urge the industry is let’s focus on production. It is only when we earn the US dollars, it is only when we export, that we can stabilise the exchange rate. At the moment, we want the exchange rate to be determined by market forces, and then in terms of stability, we need to produce. We are happy with the direction we are taking, we are happy with what is happening in the auction and this is actually giving confidence in the market.”

The Deputy Minister highlighted that the government is being forced to come up with numerous measures to regulate the industry due to non-compliance by some players.

“We are having a number of compliance issues, I can give you an example we have got large wholesalers, large hard ware shops. Hardware shops are charging an exchange rate of 1:100 but when they issue the till slip they are using the official auction rate. This is a problem we are trying to address at the moment. But what I’m calling on the players is let’s try to abide by market rules.”

Government has been focusing on increasing production in areas like agriculture and mining with the aim of creating enough food for the country and ensuring more exports to bring in foreign currency.