Zim mulls currency reforms to address inflation, e...

Zim mulls currency reforms to address inflation, exchange rate volatility

Nyashadzashe Ndoro

The Zimbabwean government has announced plans to tackle inflation and exchange rate volatility through a series of currency reforms.

The Deputy Minister of Finance, Economic Development and Investment Promotion, David Mnangagwa revealed this during a parliamentary session on Thursday.

While details of the reforms will be unveiled in the upcoming Monetary Policy Statement by the Reserve Bank of Zimbabwe, Mnangagwa hinted at measures aimed at stabilising the currency and the exchange rate. This suggests a multi-pronged approach could be coming to address the inter-connected issues.

“The inflation phenomena in Zimbabwe is coupled with exchange rate volatility which means that inflation moves in direct correlation with our exchange rate movement. What will be happening over the next few weeks or the fullness of time is, Government, through the Monetary Authority, the Reserve Bank, will be releasing a Monetary Policy Statement.

“In this Statement, we will have some reforms towards the currency, towards the exchange rate management system and some corrective measures to ensure that we have stability on the currency front,” Mnangagwa said.

The announcement comes amid concerns over rising prices and a fluctuating exchange rate, which have eroded purchasing power and created uncertainty in the market. Zimbabwe has a history of high inflation, and the government is under pressure to find sustainable solutions.

Citizens can expect more clarity on the specific measures planned by the government in the forthcoming Monetary Policy Statement. The government expects this to provide a clearer picture of the government's strategy to achieve economic stability.