Harare, Zimbabwe/Bloomberg

Economy

Zimbabwe plans monetary policy committee, benchmark rate

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Last month, the Government authorised the trade of local securities known as bond notes and their electronic equivalent on an inter-bank market and said it will allow market participants to set the rate.

Sunday 10, March 2019

 (Bloomberg) --Zimbabwe plans to establish a monetary policy committee and set a benchmark interest rate as it tries to stabilise an economy that has all but collapsed and build confidence in its own newly launched currency.

The country will also put in place an inflation-targeting regime, according to George Guvamatanga, the Permanent Secretary in the Zimbabwe Ministry of Finance.

“There will be a return to a full monetary policy framework,” added Guvamatanga.

The reforms would be the latest implemented to try and quell an economic crisis that is pushed the inflation rate to its highest since 2008, when price growth reached an estimated 500 billion per cent. That led Zimbabwe to abandon its own currency in favour of the dollar in 2009.

 

TAGS : Zimbabwe, President Emmerson Mnangagwa, Mthuli Ncube

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