New currency measures applauded.

Online Desk |  1 year ago | top

Economic analysts say the new currency measures announced by President Emmerson Mnangagwa recently reflect Government’s desire to move towards a market driven exchange rate. 

In an interview with Star FM News, economist Kudzai Mutisi said the willing-buyer-willing-seller foreign exchange system will lead to proper price discovery of the exchange rate.

Another economist Kuda Mugova said although the suspension of lending by banks to both the Government and the private sector will initially cause shocks on business operations it will in the short term remove excess liquidity.

President Mnangagwa announced a raft of measures meant to stabilize the exchange rate that includes retailers and wholesalers using the recently introduced interbank exchange rate. 

The Reserve Bank of Zimbabwe has already moved to adopt the willing buyer willing seller rate (WBWS).