Finance Deputy Minister Kudakwashe David Mnangagwa has announced that the Treasury is working on a “permanent solution” to address price and exchange rate distortions in Zimbabwe. This comes after President Emmerson Mnangagwa revealed that the central bank and Finance Ministry would soon implement policies to tackle inflation and the depreciation of the local currency.
Despite previous measures introduced by authorities, the Zimbabwean dollar remains volatile. In response to a question from Member of Parliament Clemence Chiduwa about the stability of the Zimbabwean dollar and rising prices, Mnangagwa stated that a monetary policy statement would be issued soon. He acknowledged the increase in exchange rates and inflation figures and mentioned that actions were being taken to find a permanent solution. NewZimbabwe quotes him as saying:
I would not want to pre-empty a monetary policy statement as well as fiscal policy announcements that will be coming, but would acknowledge that the increase in the exchange rates and inflation figures are something that we are fully aware of.
There are actions that are being taken as far as crafting something that can be a permanent solution. So, I would like to leave it at this juncture without putting the cart before the horse Hon. Speaker.
Mnangagwa also warned retailers who only accepted the United States Dollar (USD) and rejected the local currency, stating that they would face legal consequences. In some areas, the Zimbabwean dollar has been substituted by the US dollar or the South African rand due to surging inflation.
Members of Parliament also expressed concerns about the availability of point-of-sale machines in most shops. Mnangagwa explained that such issues were related to the underlying problems of inflation and exchange rate disparities. However, he assured the members that a combination of measures would be implemented to address these issues.