The upcoming Monetary Policy Statement (MPS) is eagerly awaited this week, with a focus on how the Reserve Bank of Zimbabwe (RBZ) plans to address the currency instability gripping the economy.
The Zimbabwe dollar has witnessed significant depreciation since the start of the year, intensifying expectations on how newly appointed RBZ Governor, Dr. John Mushayavanhu, will navigate the currency challenges.
Economist Mr. Malone Gwadu provided insights into the potential direction of the MPS, suggesting a structured approach to the currency, possibly backed by gold and tied to the US Dollar, alongside the utilization of existing instruments such as the ZIG currency.
The business community is eagerly anticipating measures that restore confidence, particularly in the local currency. Zimbabwe National Chamber of Commerce CEO Mr. Christopher Mugaga emphasized the importance of confidence in currency, stressing that economic policies should support sustainable growth.
Economists Mr. Happiness Zengezi and Mr. Persistence Gwanyanya emphasized the need to address uncontrolled money supply growth. They highlighted the importance of the governor implementing measures to manage inflation and control prices by regulating money supply effectively.
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With the government extending the multicurrency regime to 2030 and reiterating its commitment to the local currency, the onus is on monetary authorities to bolster the value of the local currency while ensuring economic stability.
The forthcoming MPS is anticipated to provide clarity on the strategies and measures to achieve these goals.
