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ZCTU questions liberalisation of currency exchange

by Stephen Jakes
16 Mar 2020 at 07:28hrs | Views
Zimbabwe Congress of Trade Unions secretary-general Japhet Moyo has questioned the rationale in the Reserve Bank of Zimbabwe's move to liberalise the country's foreign currency market.

"Confidence brings in investors, and investors bring in jobs! The new policy finally liberalises the country's foreign currency market, and discards the interbank exchange rate peg between the US$ and the bond note, which was at the centre of various foreign exchange price distortions," he said.

"But was this the only distortion, and is liberalisation going to cure the current forex shortages and instil confidence in the market and attract investors? Clearly the assumption that the pegging of the interbank exchange rate is the source of the problem is wrong."

"I would want to believe that we need confidence in the financial market, and real(genuine not cartels) investors would come and create jobs. Once you have jobs you start to produce and earn value and that settle the issue of the currency."

He said when one is not producing then what they claim is their currency is valueless.

"Our problems at the moment became the currency as a result of non-production. A market of "dealers" is not good for economic growth," he said.

Source - Byo24News