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Mnangagwa secures U.S. credit to address foreign exchange shortage

by Agencies
27 Sep 2018 at 15:59hrs | Views
PRESIDENT Mnangagwa has promised Zimbabwe that his accelerated reform plans to tackle the numerous challenges facing the economy and that he can depend upon U.S. dollar to help him achieve that. The main challenges are the shortages in foreign currency and cash. The President said when opening the First Session of the Ninth Parliament of Zimbabwe that the government will multiply its efforts toward addressing the uncertain macroeconomic environment. He explained that it will be achieved through steps taken to improve liquidity, make foreign currency more available, enhance his country's investment appeal, reduce the national budget deficit, ensure the growth of all economic sectors, and institute currency reforms.

Mnangagwa lays out goals

He added that the main goals are to improve the delivery of social service, end corruption, create jobs, restore macroeconomic order, provide good education, sanitation, clean water, sustainable environmental practices, health care, and requisite efficient and modern infrastructure.
In a bid to further calm markets over fears around currency reform plans, the President added that the process of reforming the economy will rely on the U.S. dollar and that the government had secured foreign credit to relax foreign currency shortages. The Government is continuing with its process of developing strong economic conditions and a foundation to support an upcoming reintegration of local currency.

The weight of a country's economic balance can hang by the performance of its currency. Foreign exchange (or forex as it's often known), in particular, can greatly impact a country. It's become so influential, in fact, it can even significantly affect an individual's financial situation. That's due to forex having become a popular way of trading for many people who speculate on how they think a country's currency will perform in the future. They keep themselves informed of global news and speculate on online platforms. These platforms enable them to gamble on the performance of numerous countries via online trading; South Africa, Zimbabwe, and other nations included. Forex speculators often start with a demo account to get them used to trading before getting involved for real. For Mnangagwa, however, he has no choice but to be involved for real.

Meeting demand
President Mnangagwa, who was elected in July of this year, said that his government has successfully secured half a billion dollar U.S. dollars in foreign credit. He will use the funds to attempt to meet a growing demand for foreign currency by both the public and businesses.

"Zimbabwe's new President takes office" (Public Domain) by newsmeasurements

He insisted that he will also dedicate resources into addressing challenges around foreign currency in the manufacturing industry through more disbursements and that greater efforts will be made in pushing value addition and beneficiation in order to penetrate local, continental, and international value chains and markets.

Mnangagwa said that mining continued to be an important aspect in his country's economic recovery plans and that the production in the chrome, platinum, and gold sub-sectors was an encouraging sign. As such, he added that his government will take steps to further revive the sector and widen the number of minerals that Zimbabwe can exploit.

Source - Agencies