Mushayavanhu pins hope on forthcoming MPS
The forthcoming 2024 Monetary Policy Statement, will adequately deal with most of the challenges bedevilling the country’s economy and the banking sector in general, according to incoming central bank governor Dr John Mushayavanhu.
While the 2024 Monetary Policy Statement will be presented by outgoing Reserve Bank of Zimbabwe governor Dr John Mangudya, his successor Dr Mushayavanhu believes the Policy Statement will “adequately address” monetary policy and banking sector challenges that the economy has been experiencing.
Governor Mangudya has already stated that the 2024 Monetary Policy Statement will decisively deal with the exchange rate challenges that the country has experienced for several years.
“As Treasury, as the central bank and as the government of Zimbabwe, we think what we are convinced what we are working on is what the Zimbabwean market required and we have found the solution to the instability of the exchange rate which has been bothering us for a long time,” said Dr Mangudya in a recent interview with this publication.
Finance and Economic Development Minister, Professor Mthuli Ncube, is also on record that the 2024 MPS will provide answers to the exchange rate challenges in particular addressing challenges posed by the 10 percent exchange rate trading margin that businesses must adhere to in their pricing.
The 2024 MPS comes at a crucial time for Zimbabwe, grappling with high inflation, currency instability and widespread unemployment. Many citizens, already weary from years of economic hardship, are yearning for more specific solutions and a clearer vision for the future.
Past economic policies have been fraught with inconsistency and opacity, leading to scepticism among the public and investors.
Many remain hopeful that the 2024 MPS will provide a comprehensive roadmap for addressing Zimbabwe’s economic woes.
The market expects the Governor to announce bold measures to tame inflation, currently on an upward trajectory since August 2024. This could involve currency reforms and stricter fiscal discipline. Past attempts have however yielded shortlived positive results.
Many also expect the Governor to announce sustainable measures to stabilise the fluctuating exchange rate, a major deterrent to foreign investment and economic growth. Strategies might include interventions in the foreign exchange market or introducing a currency board as previously hinted by Prof Mthuli.
Questions are also on whether the central bank can play a proactive role in stimulating key sectors like agriculture, manufacturing, and tourism.
Responding to some of these questions from this writer, Dr Mushayavanhu, who reportedly is already participating in activities that involve the central bank, said:
“All the above questions will be adequately addressed in the forthcoming Monetary Policy Statement.”
Dr Mushayavanhu reportedly participated at the last Monetary Policy Committee and was also present during recent meetings with the International Monetary Fund (IMF).
-ebusinessweekly
