Story by Owen Mandovha
The Reserve Bank of Zimbabwe says the de-dollarisation roadmap is no course, with industry stakeholders calling for refinement of the policy stance to maintain stability in the economy.
The continuity of the multi-currency regime dominated discussions at a Post-Monetary Policy Statement Breakfast Meeting in Harare this Thursday, with stakeholders citing that the policy is noble, but needs fine tuning given the widespread use of foreign currency for transacting.
“The RBZ underlined that there is no going back on that policy measure, but certainly looking at the current situation the ZiG is only about 10% of the money in circulation,” said property developer, Mr Ken Sharpe.
“Certainly the policy measures by the Governor require huge introspection. The industry is not opposed to the mono-currency regime but many considerations need to be made given that there is a need to eliminate the exchange rate distortions currently bedeviling the economy. However more considerations need to be made on the timelines that do not distort the current economic trajectory,” said CEO of Africa Roundtable, chairperson Mr Oswell Binha.
RBZ deputy governor Dr Innocent Matshe reiterated that the Central Bank’s stance to de-dollarise by 2030 is the best route available to achieve economic stardom.
“This economy is affected by low liquidity, especially of the United States dollar which we cannot control at all hence we will continue on that path so that we give full control over our monetary policy to dictate the growth of the economy, ” he said.
Meanwhile, Buy Zimbabwe executive Alois Burutsa says government’s new stance on local product procurement resonates well with its de-dollarisation roadmap to cut imports.
“Ahead of this year’s inaugural cabinet meetings President Emmerson Mnangagwa reiterated the importance of making sure that local firms receive a boost by removing bureaucratic processes hence that boost local procurement which is a key factor in reducing imports which makes it easier to de-dollarise,” he said.
The need for tax simplification was also raised, with the business community commending President Emmerson Mnangagwa’s insightful thrust to streamline taxes.
