Andrew
Lincoln Towindo in BULAWAYO
GOVERNMENT has begun taking measures to discourage speculative borrowing in the market in order to protect the Zimbabwe dollar from further depreciation, Vice President Dr Constantino Chiwenga has said.
Addressing delegates attending the Zimbabwe International Trade Fair (ZITF) 2022 International Business Conference in Bulawayo on Wednesday, VP Chiwenga said unrestrained borrowing was behind the recent depreciation of the Zimbabwe dollar against major currencies.
“The Reserve Bank of Zimbabwe has moved to curtail the resurgent price increases in the economy and stabilise the volatile exchange rate through increasing interest rates and further cutting down the quarterly targets for money supply growth,” he said.
“These measures demonstrate Government’s desire to stem further price increases, whose primary driver is speculative borrowing leading to the depreciation of the local currency and fuelling price hikes.
“Similarly, I want to implore the business community to complement Government’s efforts by practising ethical business ethos and desist from unjustified price increases.”
He said those in business must act in a responsible manner.
Dr Chiwenga urged businesses to take advantage of the challenging operating environment occasioned by the Covid-19 pandemic to innovate and re-strategise.
“It is important for business to view the Covid-19 pandemic from a positive stand-point as it provides an opportunity to innovate, re-think and re-invent.
“For this reason, we are calling on the private sector to join hands with Government on the development and domestication of value chains as espoused in the National Development Strategy 1. The priority is moving the economy up on the value chain and structural transformation underpinned by strengthening of already existing and developing of new value chains.”
Online Reporter