News / National
'Zimbabwe economic conditions do not demand for huge demand for forex'
05 Apr 2019 at 07:10hrs | Views
The obtaining economic fundamentals do not provide for a huge demand for foreign currency and a spike in the interbank market rate, according to Finance and Economic Development Minister Professor Mthuli Ncube.
Prof Ncube said while Government has no appetite to be involved in determining the interbank rate, preferring to leave that to market forces, there was no need for a higher rate.
On Wednesday, the interbank rate was 1:3,0396, compared to 1:4,3 on the parallel market.
The interbank rate has risen steadily from the 1:2,5 it started on in February.
Prof Ncube said Government is currently running a monthly surplus, implying there is no creation of money, while money supply growth has also dropped substantially.
Prof Ncube said while Government has no appetite to be involved in determining the interbank rate, preferring to leave that to market forces, there was no need for a higher rate.
The interbank rate has risen steadily from the 1:2,5 it started on in February.
Prof Ncube said Government is currently running a monthly surplus, implying there is no creation of money, while money supply growth has also dropped substantially.
Source - Business Weekly
