Eddie Cross hails Monetary Policy Statement

Eddie Cross hails Monetary Policy Statement
Published: 21 February 2019 (271 Views)
ECONOMIST and former MDC legislator Mr Eddie Cross has hailed the 2019 Reserve Bank of Zimbabwe (RBZ) Monetary Policy Statement and believes it will play a major role in stabilising the pricing system in the economy.

The Apex Bank Governor, Dr John Mangudya, presented his policy statement on Wednesday during which he announced a raft of measures designed to preserve the purchasing power of RTGS money and restore export competitiveness within the economy.

The crux of the policy interventions was the establishment of an interbank foreign exchange market, putting in place of a local nostro foreign currency accounts settlement platform, among other guidelines aimed at ensuring stability and resilience of the financial system through a macro-prudential framework.

In an interview, Mr Cross said formalisation of the forex exchange market will go a long way in eradicating the forex black market and stabilising prices of basic commodities.

"It's a step in the right direction especially looking at the establishment of the formal forex exchange market. What it means is that the forex prices will stabilise and the forex black market will eventually disappear," he said.

Mr Cross concurred with the RBZ that the new measures were expected to stabilise and reduce prices of commodities in the long run.

"Definitely, prices of most goods are expected to drop following the freeing up of the exchange rate. The prices have increased as they chased the exchange rate but after the formalisation and stabilisation of the market, prices will definitely fall," he said.

The RBZ interventions come on the back of an outcry over pricing distortions and rent-seeking behaviour in the market, which is largely blamed on the thriving parallel market exchange system. The new measures mean that the Government has abandoned the previous 1:1 exchange rate between the Bond note/RTGS balances against the US dollar.

Mr Cross, however, said the exchange control mechanisms should be totally abolished in the long run to allow market forces to be at play.

"I really feel exchange rate controls should be totally abolished altogether as they have a negative impact on the economy," he said.

The monetary statement provisions, Mr Cross said, also compliment the austerity measures announced by the Minister of Finance and Economic Development, Professor Mthuli Ncube, in his 2019 budget.

"Indeed, the monetary policy is in tandem with Mthuli's fiscal budget and I strongly think the two complement each other and in the long run the economic questions will be answered," he said.



- chronicle

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Prophet Makandiwa mansion raises eyebrows

by Staff Reporter | 22 July 2019 | 65 Views

Exposed Ramaphosa reacts to Public Protector's report

by Staff Reporter | 22 July 2019 | 41 Views

UCE graduation ceremony

by Dr. A. Luthuli | 22 July 2019 | 45 Views

ZERA looking to remote fuel monitoring system

by Staff reporter | 22 July 2019 | 46 Views

The corruption commission

by Clemen Moyo | 22 July 2019 | 56 Views

Government speaks on Auxilia Mnangagwa - Army fallout

by Mandla Ndlovu | 21 July 2019 | 193 Views

Chinamasa's world up in flames

by Mandla Ndlovu | 21 July 2019 | 175 Views

Teachers to shutdown schools on Monday

by Mandla Ndlovu | 21 July 2019 | 152 Views

Zimbabwe govt licenses companies for riverbank mining

by Staff Reporter | 21 July 2019 | 100 Views

ZCTU proceeds with demo preps

by newzimbabwe | 21 July 2019 | 148 Views

Mnangagwa pledges support for women's projects

by Staff reporter | 21 July 2019 | 90 Views

Mthuli Ncube needs to work his magic on inflation

by Staff reporter | 21 July 2019 | 116 Views

'The electorate believes in Zanu-PF'

by STaff reporter | 21 July 2019 | 95 Views

Mnangagwa gets Sadc boost

by Staff reporter | 21 July 2019 | 103 Views

Power shortage hits mobile phone services

by Staff reporter | 21 July 2019 | 79 Views

City fathers or city dealers at council chambers?

by Limukani Ncube | 21 July 2019 | 89 Views

Bulawayo residents call for dissolution of council

by Staff reporter | 21 July 2019 | 82 Views

Nust bursar suspended

by Staff reportet | 21 July 2019 | 82 Views

Mid-air scare for fastjet passengers

by Staff reporter | 21 July 2019 | 79 Views

Exploring the causes of Gukurahundi

by Dr Obert Mpofu | 21 July 2019 | 108 Views

Lobels shut down Bulawayo plant again

by Staff reporter | 21 July 2019 | 96 Views

Harare demands 30-year-old debt from Zesa

by Staff reporter | 21 July 2019 | 77 Views

Kalanga lobby group to produce textbooks

by Staff reporter | 21 July 2019 | 75 Views

Govt moves to tackle gold leakages

by Staff reporter | 21 July 2019 | 68 Views

Mthuli Ncube to rescue closed mines

by Staff reporter | 21 July 2019 | 84 Views

Zimbabwe reels as 18-hr power cuts

by Staff rpeorter | 21 July 2019 | 120 Views

Kirsty Coventry denies interference

by AFP | 21 July 2019 | 60 Views

Zimbabwe removes barriers to solar energy expansion

by Thompson Reuters Foundation | 21 July 2019 | 110 Views

Zimbabwe food crisis an emergency, says UN

by VOA/ UN News | 21 July 2019 | 58 Views

Can Bosso's Prince rise again?

by Staff reporter | 21 July 2019 | 36 Views

CIO operative harasses journalists

by Staff reporter | 21 July 2019 | 36 Views

Save Bulawayo from vultures

by Staff reporter | 21 July 2019 | 70 Views

The pig in Mthuli Ncube's bacon

by Zifiso Masiye | 21 July 2019 | 91 Views

Mnangagwa ally faces probe in $3bn scandal

by Staff reporter | 21 July 2019 | 48 Views

Power outage cripples Econet services

by Staff reporter | 21 July 2019 | 56 Views

Lobengula descendants demand State House

by Staff reporter | 21 July 2019 | 47 Views

Zanu-PF vote-buying scandal raises alarm

by Staff reporter | 21 July 2019 | 66 Views