The new measures recently unveiled by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya have been credited with stabilising prices — with youthful Gokwe-Nembudziya MP Justice Mayor Wadyajena — becoming the latest businessman to back them to succeed.
This comes as manufacturers have reported significant improvement in sourcing their raw materials following the restoration of an interbank market which now gives them access to buy foreign currency from banks.
“Kudos to… JP Mangudya whose monetary policy is starting to bear enormous and quite impressive results as we are all witnessing reduction & stability on pricing. “Companies with bonafide external payments are now accessing forex from the banks at 1:2, 5,” Wadyajena wrote on micro blogging site Twitter yesterday.
This week Confederation of Zimbabwe Industries (CZI) president Sifelani Jabangwe attributed the price decreases and stability to the Monetary Policy Statement (MPS) announced by Mangudya last month and which was aimed at killing the once thriving foreign currency black market.
“With access to foreign currency….prices are bound to go down and this will make positive contributions towards the economy,” Jabangwe said. Last month, Mangudya in his MPS introduced a slew of measures which he said were aimed at bringing down the high prices of goods in the country, as well as growing the economy — including opening up foreign currency trading by banks and bureaux de change.
Both consumers and business welcomed the new measures saying these should have been introduced much earlier to stem the country’s economic crisis and the foreign currency black market which was wreaking havoc on inflation prices.
“In this regard, prices should remain at their current levels and or to start to decline in sympathy with the stability in the exchange rate given that the current monetary balances have not been changed.
“In this respect, the RBZ will commit all its efforts to use the instruments at its disposal to maintain stability of the exchange rate,” Mangudya said. DailyNews