THE Government through the Reserve Bank of Zimbabwe will
tomorrow release US$500 million to supply the interbank foreign currency
market, a move which will culminate in the reduction of basic commodities
prices and dampen activities on the parallel exchange rate.
In a tweet on its official Tweeter account yesterday, RBZ
said it would release US$500 million on Monday to supply the interbank forex
market.
“Government through the Reserve Bank of Zimbabwe is drawing
down US$500 million on Monday, 20 May 2019, to supply the interbank forex
market to meet the forex payment requirements of business and individuals,”
read the tweet.
Responding to the tweet by the central bank, Finance and
Economic Development Minister Professor Mthuli Ncube said: “The US$500 million
new facility raised from international banks will increase the supply of
foreign currency for imports, for industry and other sectors.”
Contacted for comment RBZ Governor Dr John Mangudya said
the facility would breathe life into the interbank foreign currency market.
The interbank market rate has crept up from its starting
level of 2,5 to the green-back to around 3,3 remaining significantly lower than
the illegal market rates.
“The facility will ensure that the interbank market is
alive and kicking so that we meet the requirements of companies, producers and
individuals that need to make foreign payment. What this means to me and you is
that the foreign currency market will be stabilised . . . ,” said Dr Mangudya.
He said the stabilisation of the inter market rate would
result in improved production by industries, by so doing stabilising the prices
of basic commodities.
The initiative is likely to be complemented by industry,
which has since resolved to work closely with Government and labour in urgently
developing an action plan that is expected to stabilise prices of basic
commodities and determine fair remuneration for workers in order to “arrest”
current distortions that are causing consumer discomfort.
Business believes that “the basic economic fundamentals are
positive” and “the economy is currently generating (foreign) currency that
should be enough for the economy”.
Business membership organisations (BMOs), who included
representatives of industry, agriculture, mining, banking and the retail
sector, agreed at a high-level meeting held in the capital on Friday that the
challenges that are being experienced in the economy can be directly linked to
foreign currency availability and pricing distortions.
Government has also launched an investigation into
anti-trust behaviour and price rigging on mounting speculation that some
companies could have abused the RBZ’s foreign currency facility.
Head of the Special Anti-Corruption Unit in the Office of
the President and Cabinet Mr Tabani Mpofu said there were serious concerns over
the sudden jump of basic commodities such as life-saving drugs in pharmacies
and food stuffs.
“There are allegations of cartels which are stifling
competition. There is suspicion that in most of these commodities, there is
corruption.
“We are also looking at bread prices because there are
allegations that there could be collusion between bakers and some millers.”
Sunday Mail
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