Rebalancing the economy, containing government expenditure and increasing productivity summarize the measures being sought by the 2018 Monetary Policy review presented this afternoon.
The economy has been characterised by rent seeking behavior which has created some economic shocks that eroded confidence amongst Zimbabweans.
The Monetary Policy review presented this afternoon seeks to mop up excess liquidity that has been hampering economic activities with fiscal imbalances out of control.
An industrialist, Mr Denford Mutashu said measures to strengthen the multicurrency system as enshrined by the Monetary Policy statement are the tonic needed to develop the economy.
A research economist, Mr Batanai Matsika said the pronouncement to the effect that all banks are with immediate effect to open nostro and RTGS foreign currency accounts will boost investor confidence and diaspora remittances as clients money will be ring fenced from inflationary pressures and as a result will stabilise foreign exchange to the betterment of the economy.
In an unprecedented move of seriousness to economic matters, fiscal and monetary authorities coordinated their efforts to come up with the raft of measures presented in the monetary policy that are expected to steer the economy forward.
Other analysts said while the Monetary Policy Statement has set the tone for a robust turnaround of the economy, this should be supported by other critical pillars to ensure a complete reversal of the fiscal imbalances that have been draining the economy.
The private sector has a critical role to ensure that the outlined reforms are achieved in the short to medium term.
This hints to a robust public private partnership (PPP) that will address issues around the current infrastructural deficit requiring at least $20 billion within the next decade as well as an improvement in production.
A direct correlation exists between a good Monetary Policy Statement and improved industrial capacity as well as enhanced exports.
This hints to the provision of trade finances that should be for on lending to private firms by local financial institutions.
Source – ZBC