Staff Reporter
The Reserve Bank of Zimbabwe (RBZ) has reaffirmed that the recently announced Monetary Policy Statement (MPS) serves as a crucial tool for stabilising the exchange rate while laying the groundwork for the country’s de-dollarisation roadmap.
RBZ Governor Dr. John Mushayavanhu, appeared before the Parliamentary Portfolio Committee on Budget and Finance on Monday, where he was questioned about the effectiveness of the policy in addressing economic challenges. The committee sought clarity on whether the measures outlined in the MPS would provide the much-needed relief for businesses grappling with currency instability.
In his remarks, Dr. Mushayavanhu emphasised that the Central Bank remains committed to stabilising theZimbabwe Gold (ZiG) currency, which was introduced to anchor economic recovery.
“We are doing everything necessary to stabilize the ZiG currency. In line with the de-dollarisation roadmap, our target remains 2030, by which time we aim to have completely phased out foreign currency transactions,” he said.
The Governor also highlighted RBZ’s continued support for the productive sector through targeted financing facilities, which are designed to strengthen key industries.
However, he acknowledged growing calls for similar support to be extended to the retail sector, given the challenges facing businesses operating using the local currency.
Regarding interest rates, Dr. Mushayavanhu indicated that the Central Bank is currently using month-on-month inflation as a guiding metric, with year-on-year inflation figures expected to be assessed by May.
Chairperson of the Parliamentary Portfolio Committee on Budget and Finance, Energy Mutodi, underscored the importance of the Governor’s engagement, noting that it was crucial to assess how the monetary policy was addressing pressing economic concerns.
“This discussion was important for us to understand how the MPS is working to ease economic pressures, particularly in relation to de-dollarisation. We also wanted to explore ways to support businesses struggling under current conditions,” said Mutodi.
Dr. Mushayavanhu assured the committee that the central bank remains cautious in managing liquidity to ensure the long-term stability of the local currency. He reiterated that the RBZ’s policy direction is guided by a commitment to economic stability, sustainable growth, and a gradual transition to a fully de-dollarisedeconomy.
As Zimbabwe moves towards its 2030 de-dollarisation target, the success of the monetary policy will be closely watched, with businesses and consumers alike hoping for lasting stability and economic resilience.
