Govt implored to float exchange rate

Spread the love

HARARE – Business leaders have called on government to float the exchange rate or at least adjust it to improve efficiency.

Captains of industry have called upon the government to adjust the exchange rate between the US dollar and bond note to reflect the prevailing market conditions.

Mr Sifelani Jabangwe of the Confederation of Zimbabwe Industries said the current 1:1 rate is not only causing price distortions and rent seeking opportunities but is severely hurting exporters who are not getting fair value for the retained forex proceeds especially in the mining sector.

Business and industry has resorted to base their pricing models using the parallel market exchange rate to preserve value.

Mr Mike Kamungeremu of the Zimbabwe National Chamber of Commerce pleaded with government to relax the exchange rate to ensure business continuity.

The parallel market forex exchange rate has held its forte and has been stable for some time at the current rate.

With the status quo, industry anticipates the exchange rate issue would be dealt with in the upcoming monetary policy in the first quarter of next year as the budget failed to address it.