News / National
Bond notes, US dollar distortions to end soon
23 Nov 2018 at 14:36hrs | Views
Treasury is tightening the noose on fiscal indiscipline which has wiped out the benefits and economic stability brought about by the adoption of a multi-currency regime.
There are indications that the currency distortions will end by February next year.
Is this the end game to the currency crisis, which has led to serious market distortions where the surrogate bond note has traded at a premium of 260 percent on the parallel market?
Finance and Economic Development Permanent Secretary Mr George Guvamatanga says treasury is tightening the noose on market forces that had created arbitrage opportunities, outlining a framework of just less than three months from now, to contain this vice.
The treasury executives engaged with business leaders during a post budget breakfast meeting convened by the Confederation of Zimbabwe Industries this Friday where critical aspects of the budget were unpacked for consideration by the finance ministry.
Finance and Economic Development Minister Professor Mthuli Ncube has outlined a vision to trim the budget deficit to five percent of gross domestic product in 2019, and 3.2 percent in the following year, and he says this is achievable judging from a balanced budget for the months of September to October 2018.
Stringent measures such as scaling down the issuance of treasury bills and overdrafts as well as the five percent salary cut on senior civil service staff, including the presidium, is viewed by economists as positive strides to contain an evil that has wiped away the benefits and economic stability brought about by dollarisation.
There are indications that the currency distortions will end by February next year.
Is this the end game to the currency crisis, which has led to serious market distortions where the surrogate bond note has traded at a premium of 260 percent on the parallel market?
The treasury executives engaged with business leaders during a post budget breakfast meeting convened by the Confederation of Zimbabwe Industries this Friday where critical aspects of the budget were unpacked for consideration by the finance ministry.
Finance and Economic Development Minister Professor Mthuli Ncube has outlined a vision to trim the budget deficit to five percent of gross domestic product in 2019, and 3.2 percent in the following year, and he says this is achievable judging from a balanced budget for the months of September to October 2018.
Stringent measures such as scaling down the issuance of treasury bills and overdrafts as well as the five percent salary cut on senior civil service staff, including the presidium, is viewed by economists as positive strides to contain an evil that has wiped away the benefits and economic stability brought about by dollarisation.
Source - zbc
