BE PATIENT ON MONETARY POLICY : MINISTER MNANGAGWA

GOVERNMENT has called for patience as it works on a monetary policy which will bring confidence to the market and deal with critical issues to curb the effects of exchange rate volatility.

The plea from Government comes as wide consultations are being made in order to craft a policy statement that will come with a raft of measures which will stabilise the economy. In an interview with Sunday News yesterday, Deputy Minister of Finance, Economic Development and Investment Promotion Cde David Mnangagwa said Government is going to go through some currency reforms, with some reforms targeted at the exchange rate management systems that will be coming through the Monetary Policy Statement (MPS) in the next few weeks.

“At this moment we cannot give a definitive date on when the MPS is likely to come out, but we can be expectant in the next few weeks. The pending MPS is going to be quite pivotal because it is intended to deal with critical issues that are affecting all Zimbabweans that is Government, the private sector and the general citizenry. No one has been spared from the ripple effects of exchange rate volatility which has been driving inflation.

“Bearing this in mind, the MPS, which will introduce reforms in our currency and exchange rate management system, has to be a policy that brings relief to this one sticky area that potentially threatens our positive growth trajectory, henceforth it is being thoroughly mapped out, widely consulted both formally and informally, making sure that the final product is one which will bring confidence to the market,” said Deputy Minister Mnangagwa.

He said the MPS will provide a concrete solution for a structured currency to sit on, as enunciated by President Mnangagwa.

“The President mentioned that we will have a structured currency, this structure needs to sit on a sound base and this is a process that cannot be rushed. We are fully cognisant that we have an anxious market at the moment, with everyone on pins and needles awaiting the MPS, but we plead for patience. I will also advise market makers and market players not   to take any extreme long or short term positions ,as Government is taking safeguards against loss of value,” said Dep Min Mnangagwa.– Sunday News

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