Analysts speak on much-awaited monetary policy statement




RBZ governor Dr John Mangudya

HARARE – Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya will soon present the monetary policy statement, with expectations of measures to sustain stability in the country’s markets.

The Monetary Policy Statement will be presented at a time when Government has introduced the National Development Strategy One to facilitate the growth of the economy by at least seven percent annually, boost spending power and consolidate currency reforms.

Economist Lazarus Nyagumbo says the central bank chief should focus on confidence building measures and improve the foreign exchange auction.

“There is a lot that we expect remember there have been some slight movements of prices so we expect such issues to be addressed by the authorities,” he said.

University of Zimbabwe Business School Director Dr Nyasha Kaseke said a clear cut interest rate policy, efficient management of banks, a prudent currency management system will also set the tone for stability.

“Industry and commerce are in business to make profits so this policy should provide a good direction relating to the operation of banks,” said Dr Kaseke.

Tobacco Association of Zimbabwe president George Seremwe said there is the need for the RBZ  Governor to maintain achievements made in 2020, despite the Covid-19 induced shocks, stamping out financial indiscipline and introducing favourable regulations for exports.

“This is what we all need so that we can map and structure the way forward based on such key deliverables,” he said.

The central bank has hinted on measures to increase domestic production of basic goods and exportable commodities to reduce pressures on foreign currency demand while increasing inflows.