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RBZ to continue with confidence building measures

by Staff reporter
21 May 2019 at 21:12hrs | Views
The Reserve Bank of Zimbabwe (RBZ) says it will continue to pursue confidence building measures and is optimistic the recently secured US$500 million interbank facility will go a long way in stabilising the exchange rate.

The country's apex bank maintained that the inter-bank market remains critical in correcting price distortions in the foreign exchange market and restoring domestic competitiveness.

Responding to questions during the on-going 2019 African Finance Association Conference in Victoria Falls, RBZ Director for Economic Research, Mr John Mufararikwa said the move to allow fuel companies to compete for foreign currency on the interbank market is meant to guard against arbitrage and reaffirmed the central bank's confidence that exchange rates will converge in the short to medium term.

"One major distortion that we faced was in the allocation of foreign currency and now we are saying the market should allocate the forex. Key is to ensure that all transactions that we used to allocate forex are pushed to the interbank," said Mr Mufararikwa.

Delegates attending the African Finance Association Conference being hosted by Africa Growth Institute are convinced that Zimbabwe monetary reforms will restore financial sector stability and highlighted the need for complementary fiscal policies.

Great Zimbabwe University (GZU) Vice Chancellor, Professor Rungano Zvobgo and National University of Science and Technology (NUST) Executive Dean of the Faculty of Commerce, Dr Peter Nkala emphasised the need for collective efforts in ensuring macro-economic stability.

"The cry baby approach to development will not take us anywhere," said Professor Zvobgo.

"Zimbabweans are known for their resilience and we must be determined to face the obstacles," said Dr Nkala.

The 2019 African Finance Association Conference attracted academic, banking, financial and insurance researchers and practitioners from across the continent to discuss issues impacting the banking, finance and insurance sectors in Africa.

Source - zbc

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