TREASURY boss Mthuli Ncube has pleaded with Zimbabweans to embrace the local currency for the country to achieve growth and stability objectives of National Development Strategy 1 economic blueprint.
“This, combined with other structural reforms underway, creates the necessary conditions for currency stability,” Ncube said in his Mid-Term Budget and Economic Review yesterday.
“The attainment of durable macroeconomic stability, combined with improved electricity supply situation is expected to spur economic growth above the projected 5,3% in 2023.”
Today, the Zimdollar remains highly volatile at US$1:$4 555,75 against $7 000 on the parallel market despite this being a general improvement from June.
Driving the money supply is government paying its contractors, followed by its huge wage bill and debt securities to finance its infrastructure spending.
“Going forward, macroeconomic stability is expected on account of recent bold interventions to close all sources of excess liquidity, favourable global economic environment, stronger financial regulation, as well as the enforcement of value for money principle in Government contracts,” Ncube said.
“Focus will be on consolidating the stability achieved so far by maintaining tight fiscal and monetary policies, while implementing measures to restore aggregate demand.”
He offered no reprieve for consumers who are facing a high cost of living owing to a 10% to 25% increase in US$ pricing last month.
Source Newsday
