‘Multi-currency regime here to stay’

PRESIDENT Emmerson Mnangagwa yesterday said the multi-currency regime adopted in 2009 still remains in place into the foreseeable future, while Government is committed to cutting expenditure and turning around the fortunes of perennially under performing parastatals.

The President said in a statement yesterday that a host of other fiscal imbalances seen as the root cause of the challenges facing the economy would be undertaken.

“Further to my address on the need to accelerate economic reforms that are necessary to stimulate the economy, I have found it necessary to restate Government’s strong commitment to reducing fiscal imbalances which are the root cause of the many challenges the economy faces,”

Washington DC with US Congressmen and other think tanks.

In October 2015, in a meeting in Lima, the IMF agreed to extend lines of credit to said President Mnangagwa.

“The challenges include cash shortages and the proliferation of foreign exchange parallel market rates which have a negative effect on prices.

“These challenges require that Government positions the economy on a strong footing by implementing painful, but necessary reforms that include cutting on Government expenditure, increasing efficiency on Government delivery systems and fast-tracking reforms of State Owned Enterprises, among a host of other measures.”

President Mnangagwa said Government would institute currency reforms once the implementation of the fiscal reforms has been completed and reiterated his stance that the multi-currency will remain in place.

“These reforms should be accompanied by a strong and sustainable currency reform system

Zimbabwe after the Government made a commitment to clear the then $1,8 billion arrears to the multilateral lending institution within the first quarter of 2016, but failed due set to follow after the execution of the above reforms,” he said.

“This is necessary to ensure that any currency reform programme that the Government puts in place is effective, and causes minimum disruption to business.

“Accordingly, and in view of the need for an orderly currency reform programme that will be followed when the economic fundamentals are right to do, Government shall continue with the multi-currency system which it put in place in 2009.

“This system entails that foreign exchange earners are not prejudiced of their regulatory foreign exchange receipts, and that those who do not earn foreign exchange, but produce for the domestic market, access foreign exchange through the banking system as per the current policy on foreign exchange management system. to compounding economic challenges.

There is now a renewed impetus following the change in the country’s leadership, which is expected to see the economy improve.