RBZ to present MPS soon

RBZ to present MPS soon

BUSINESS REPORTER

The Reserve Bank of Zimbabwe will soon present a concrete monetary policy statement that is expected to address current economic challenges in an effort to achieve macro-economic stability, economist and member of the Central Bank’s Monetary Policy committee, Persistence Gwanyanya has said.

This has caused serious anxiety in the market resulting in the fast depreciation of the ZWL$ against the US$1 and other major currencies.

Gwanyanya said the delay in the delivery of the statement was a result of wider consultations aimed at coming up with a holistic document.

“It is all about looking at a good thing. We want to perfect it so that all the ingredients are present. We are going through a phase of consultations as we try to come up with the best from the monetary policy,” Gwanyanya said.

“We must also accept that when you are trying to come up with such a policy, you need to consult and take your time.

“We anticipate it to be out anytime from now but what I cannot give you is the exact date. The policy will address the greater needs of the people and ensure stability. We will come up with a policy which, when we look back to reflect, will be a good document,” he said.

The market is anxious and does not know what the monetary policy will bring hence the transacting public is rushing to buy foreign currency to preserve value.

The high demand for forex has pushed the exchange rates higher in the process.

Analysts believe the MPS announcement should be done soon rather than late as the damage caused by the delays would be monumental.

The market are jittery if the structured currency monetary reforms aimed at engendering stability of the domestic currency would work or not.

According to analysts, a structured currency is a form of monetary system designed to enhance stability and manage inflationary pressures.

Structured currency takes the form of both flat and commodity backed currencies.