“Mixed Policy Messaging & Signals Will Further Erode Confidence,” CZI

The Confederation of Zimbabwe Industries (CZI) has urged the government to boost confidence in the economy to encourage investment and business continuity.

CZI observed that there was a huge deficit in confidence, something that is not encouraging confidence is a major ingredient for economic transformation.

CZI revealed in an industry analysis of the mid-term monetary policy statement addressed to its members that mixed policy messaging and signals, especially where foreign exchange and inflation are concerned, will further erode confidence which was already in low supply.

The government was therefore urged to design both the fiscal and monetary policy premised at stabilising foreign exchange market, money market and goods and services markets.

The government has previously instituted a number of measures to stabilise the economy and to boost confidence. These raft measures include establishing a new RBZ Board, a Monetary Policy Committee and an Effective Communication Strategy by RBZ.

Nevertheless, inflation has continued to soar while the local currency has continued to shed value, particularly against the United States dollar, at an unparalleled rate.

Bloomberg recently reported that Zimbabwe’s currency crisis was the worst worldwide, beating that of Argentina that others presumed to be very grave.

Coming reports suggest however that exchange rates are normalising on the parallel market the RBZ froze bank accounts belonging to Sakunda Holdings, Croco Motors, Sparta Security and a few other companies who were allegedly involved in money laundering.

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