In an interview with Bloomberg in Davos, Switzerland, Finance and Economic Development Minister Professor Mthuli Ncube revealed the steps Zimbabwe needs to take before the introduction of a new currency.
He said Government needs to cut expenditure as well as increasing compliance on the country`s revenue collection front before introducing a currency.Said Ncube:
A lot needs to be done for that can happen (introduction of the Zimbabwean currency), which first of all is fiscal discipline, making sure that we bring the budget deficit into single digits and that runaway Government expenditure is curtailed. Also making sure that there is compliance on the revenue collection front that really deals with that in terms of fiscal discipline. But also we need to build the micro-institutions for full monetary policy conduct in the sense of introducing a monetary policy committee, making sure that we put in place a framework for inflation targeting but also growth targeting in a way. Externally making sure we can begin to address our arrears in terms of what we owe to other nations, the Bretton institutions included… But fiscal discipline is key and if you noticed what has been happening since October 2018 the premiums in the parallel market have stabilised and this is because of fiscal discipline.