IMF hails Zimbabwe currency reforms as step in the right direction

Gerry Rice, from the IMF

Harare ‑ Zimbabwe needs an effective overall monetary policy framework if its currency reforms move is to succeed, the International Monetary Fund (IMF) has said.

Addressing the media Thursday in Washington DC, the United States, Gerry Rice, from the IMF communications department, said the Zimbabwe’s monetary policy framework should be supported by market-determined interest and exchanges rates, together with prudent fiscal policies.

“And our initial evaluation of (the monetary policy) which has been announced by the Zimbabwean authorities recently is that it’s a step in the right direction to address distortions that have significantly impaired those macroeconomic outcomes…,” he said.

Asked what Zimbabwean finance and economic development minister Mthuli Ncube had discussed with IMF managing director Christine Lagarde, Rice said Ncube briefed Lagarde on economic developments and reforms in the investment-hungry country.

Rice said at present, the IMF did not have a financing programme with Zimbabwe, though they would continue to have discussions with the authorities to assist them in implementing the economic reforms contained in their transitional stabilisation programme.

“(The transitional stabilisation programme) is a wide ranging stabilisation and reform programme aimed at addressing what is clearly a deep macroeconomic imbalance challenge, as well as a broader set of social and economic challenges. So the…discussions are certainly continuing,” he said.

Rice said given the absence of a financing programme, future plans would depend on clearance of arrears to other international financial institutions and financing assurances from bilateral predators, agreement on policies and many such arrangements.

African News Agency (ANA)