Zimbabwe Institute of Strategic Thinking (ZIST) a local think tank yesterday gathered the whole business community including Zimbabwe National Chamber of Commerce ZNCC and Reserve Bank of Zimbabwe (RBZ) Governor in order to bridge confidence in the Economy and Zimbabwe dollar. The RBZ Governor and business met under the theme “Building policy bridges to store up business confidence in Zimbabwe.”
The Reserve Bank of Zimbabwe boss deliberated on the currency situation with some economists urging Governor Mangudya to dump the local currency, the Zimdollar.
Renowned economist and professor at John Hopkins University Steve Hanke recently said:
“In this week’s inflation table, Zimbabwe takes the 1st place. On June 16, I measured Zimbabwe’s inflation at 365%/yr.
“More than 3x the official inflation rate of 96.4%/yr. Zimbabwe must dump the Zim Dollar & officially adopt the USD.
The broad objective of the meeting was the building of policy bridges to improve business confidence and Governor Mangudya stopped at nothing infusing that all economic fundamentals were sound hence it is only behavior for speculative purposes by some in business that was the problem and not the Zimbabwean dollar Currency.
Doctor Mangudya said, confidence in our economy and behavior is what needs to change by many bent on speculative behaviour as Fundamentals that affect the exchange rate are sound , “In this country there are two demands for foreign currency, there is import demand for foreign currency, there is the foreign import demand for foreign currency, then there is also the store value import demand.Unfortunately the other one the import demand is known. And as we meet very soon as the MPC obviously with inflation where it is we expect to find that we are going to increase further the interest rate, policy rate, what that means because when we put a policy it means none of you are going to get money with cheaper prices because we going to go to and you will be pushing us this far not because we want to do it but because we cannot sacrifice stability for growth,” the Governor said categorically without mincing his words.
Apparently, ZIST saw it fit to meet the banker of banks bankers and the government over the country’s ever-falling Zist is a local think tank founded by prominent academic, Doctor Tinashe Muzamhindo whose quest is to profer home grown solutions to the Economic challenges the nation faces.Zist has even recommended bringing together the two biggest political players led by Advocate Nelson Chamisa and the ruling party led by President Mnangagwa to sit down, share notes and do what is best for the locals and Zimbabwe amongst other local remedies.