Staff Reporter
Government has put up measures to stabilize the current exchange rate and macro economy.
In a press statement yesterday, the Minister of Finance and Economic Development, Professor Mthuli Ncube introduced Government policy measures meant to stabilise the economy including the lifting of all restrictions on the import of basic commodities.
Minister Ncube said that the current price madness and the prevailing exchange rate was necessitated by the rejuvenation of speculative macro-economic instability in which domestic inflation is driven primarily by the skewed preference for the use of the United States dollar as a savings currency.
In a bid to curb the price madness currently prevailing in the country, the Minister informed that all restrictions on imported basic commodities had been lifted.
“In order to enhance the supply of basic goods to the public, all basic goods will no longer be subject to import licenses and will also come into the country free of import duties and taxes,” said Minister Ncube.
The Minister added that in order to promote the banking of domestic sales in foreign currency, the Reserve Bank of Zimbabwe (RBZ) would with effect from 15 May 2023, exempt all proceeds from domestic sales in foreign currency from the 15 percent surrender requirement.
According to Minister Ncube, all external loans to the Government would now be transferred from RZ to Treasury. He added that the Foreign Exchange Auction System would further be fine-tuned and would now auction a pre-announced envelope on a pure Dutch auction basis.
Minister Ncube said that going forward; Government would continue promoting use of the domestic currency by all Government agencies for their domestic transactions by ensuring that levies and fees charged by its affiliated agencies and service providers are paid for in local currency.
Meanwhile, Government remains committed to maintaining macroeconomic stability and the elimination of harmful and destabilising arbitrage conditions that have pervaded the economy at the expense of the generality of citizens.
