The International Monetary Fund (IMF) has applauded Zimbabwe financial authorities’ efforts to stabilise the local currency and inflation through policy measures to contain budget deficit and reserve money growth as well as introduction of Foreign Exchange Auction System, BusinessMail can report.
The exchange auction is any regime where the allocation of a given amount of the foreign exchange is determined through a biding process. The auction system was designed to give fair value of the local currency in relation to the United State Dollar.
IMF Division Chief for African Department, Dhaneshwah Ghura said such policy measures are in the right direction.
“…an economic recovery is underway in 2021, with real Gross Domestic Product expected to grow by about 6 percent, reflecting a bumper agricultural output, increased energy production, and the resumption of greater manufacturing and construction activities,” he said.
He added that further efforts are needed to stabilise trends and accelerate reforms.
“In line with the last Article IV consultation, the mission highlighted that structural reforms aimed at improving the business climate and reducing governance vulnerabilities are essential for ensuring sustained and inclusive growth.
“To this end, the authorities’ strategy and policies as embodied in their National Development Strategy need to be fully operationalized and implemented,” said Ghuza.
He also said durable macroeconomic stability and structural reforms would bode well for the recovery and Zimbabwe’s development.
However, Ghura said the outlook will depend on the pandemic’s evolution, the pace of vaccination and implementation of sustainable policies.
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