Mthuli Ncube announces policy measures to stabilize the economy

The Minister of Finance and Economic Development, Professor Mthuli Ncube, has announced policy measures which are meant to stabilize the local currency and stimulate the economy.

The measures would be effective starting 01 June2023.

In a statement yesterday, Prof Ncube outlined strategic measures and said that treasury would now be funding the Zimbabwean Dollar component of the 25 percent foreign currency collected by exporters in order to eliminate the creation of additional money supply.

"The foreign currency collected from the 25% of the money surrendered, will now be collected by treasury and utilized in servicing the foreign currency loans assumed from the Reserve Bank of Zimbabwe. Banks will no longer withhold any foreign currency surrendered by exporters," said Prof Ncube

The Minister further outlined that Government had also taken up strategic measures that would encourage informal traders to bank their foreign currency and at the same time promoting the use of local currency.

"Interbank foreign transactions IMT tax and POS IMT tax have been reduced to 1%. All Government Agencies including parastatals will substantially now collect their fees in local currency, payments to ZESA by non-exporters will be paid in local currency and all customs duty are to be payable in local currency to promote the use of domestic currency," the Minister said.

Additionally, Prof Mthuli Ncube said that Government would now assume all foreign currency debts from the Reserve Bank of Zimbabwe starting next month.

Meanwhile, the Minister added that Government would continue reviewing civil servants salaries in line with the current strategic measures in order to stabilize the economy.