News / Local
CZI hails Zimdollar recovery
04 Sep 2022 at 02:57hrs | Views
THE Confederation of Zimbabwe Industries (CZI) has backed the swift decline in monthly inflation alongside the recovery of the Zim$, saying the developments will go a long way in providing a strong basis for business growth.
The remarks come at a time when the monthly inflation rate in August 2022 dropped to 6,6% from the July 2022 rate of 16, 1%.
Exchange rate volatility which had deteriorated to ZW$850 against US$1 on the parallel market has slightly eased to levels around ZW$720 against US$1 on the back of a raft of measures which have limited the flow of the Zim$ into the parallel market.
Amongst the measures introduced recently were gold coins, largely conceived as a measure to provide the market with an alternative investment option, which has been widely hailed for curtailing the practice of chasing after scarce foreign currency, which in the past left a trail of exchange rate instability and inflation hikes.
Speaking exclusively to NewZimbabwe.com Business Saturday, Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza hailed the recovery underscoring that it is a good ingredient for business growth.
"These trends seen in isolation are quite good. Indeed, nobody enjoys seeing inflation galloping and exchange rates going haywire. It is indeed a very welcome development," he said.
The industry leader however bemoaned the critical shortages of the Zimbabwe dollar in the economy saying there is urgent need for the government to address the anomaly.
"So the downward side which must also be considered are the critical shortages of the Zim$ in the market. We have seen local currency sales going down for reasons we believe to be prompted by the rush to purchase gold coins and the move by the government to stop payments to its suppliers," he added.
The remarks come at a time when the monthly inflation rate in August 2022 dropped to 6,6% from the July 2022 rate of 16, 1%.
Exchange rate volatility which had deteriorated to ZW$850 against US$1 on the parallel market has slightly eased to levels around ZW$720 against US$1 on the back of a raft of measures which have limited the flow of the Zim$ into the parallel market.
Amongst the measures introduced recently were gold coins, largely conceived as a measure to provide the market with an alternative investment option, which has been widely hailed for curtailing the practice of chasing after scarce foreign currency, which in the past left a trail of exchange rate instability and inflation hikes.
"These trends seen in isolation are quite good. Indeed, nobody enjoys seeing inflation galloping and exchange rates going haywire. It is indeed a very welcome development," he said.
The industry leader however bemoaned the critical shortages of the Zimbabwe dollar in the economy saying there is urgent need for the government to address the anomaly.
"So the downward side which must also be considered are the critical shortages of the Zim$ in the market. We have seen local currency sales going down for reasons we believe to be prompted by the rush to purchase gold coins and the move by the government to stop payments to its suppliers," he added.
Source - NewZimbabwe
