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IMF advises Zimbabwe to adopt forex market reforms
15 Feb 2024 at 05:01hrs | Views
As the instability of the beleaguered Zimbabwe dollar intensifies, the International Monetary Fund (IMF) has advised the government to adopt forex market reforms which are "more transparent and market-driven".
The IMF says the official Zimdollar exchange rate has depreciated by a massive 95% since the beginning of December 2023.
"The FX [foreign exchange] market reform should be accompanied by establishing an effective framework for exchange rate and monetary policies."
The restriction on the 10% allowable trading margin for pricing domestic transactions should be eliminated, the IMF also advises. The business sector has complained that the country's pricing regime is leaving companies vulnerable to financial ruin and bankruptcy.
The underlying sources of fiscal pressures must also be addressed, says the IMF.
The IMF says the official Zimdollar exchange rate has depreciated by a massive 95% since the beginning of December 2023.
"The FX [foreign exchange] market reform should be accompanied by establishing an effective framework for exchange rate and monetary policies."
The restriction on the 10% allowable trading margin for pricing domestic transactions should be eliminated, the IMF also advises. The business sector has complained that the country's pricing regime is leaving companies vulnerable to financial ruin and bankruptcy.
The underlying sources of fiscal pressures must also be addressed, says the IMF.
Source - newshawks
