Business / Economy
IMF still assessing Zimbabwe's bond notes concept
24 Apr 2017 at 16:40hrs | Views
The International Monetary Fund (IMF) says it is still assessing Zimbabwe's bond notes concept but has highlighted the significance of holistic package of economic policies to complement the bond notes strategy given the limited foreign exchange inflows.
The global lender, IMF is convinced that the new bond notes concept introduced by the Reserve Bank of Zimbabwe (RBZ) needs to be complemented by a holistic package of macro-economic measures in order to stimulate growth.
In a press briefing held in Washington DC on Sunday (yesterday), IMF director African department Mr Abebe Aemro Selassie said limited foreign exchange inflows remains a major challenge to the Zimbabwean economy adding that the financial institution is still assessing the bond notes concept.
In rolling out the bond notes on the local market, the central bank did stress the fact that the concept remains an interim measure while the long term solution lies in enhancing the competitiveness of the local industry and increasing output.
Confederation of Zimbabwe Industries (CZI) deputy president Mr Sifelani Jabangwe says the bond notes concept has been a noble home grow policy and is convinced key to unlocking the domestic economy hinges on the ability to boost productivity capacity and increasing exports.
Despite the country's efforts geared towards containing the country's import bill, export growth has not been adequate to surpass that of imports, resulting in an estimated US$2 billion negative trade balance in 2016.
The anticipated strong performance of the agriculture sector this year has however brought positive prospects for the domestic economy with treasury indicating that it is set to revise upwards the country growth rate from the initial 1.7 percent to 3.7 percent.
Source - zbc