Andrew
Online Reporter
GOVERNMENT has put in place a number of measures to reduce the gap between the official auction rate and the parallel market rate, as a way of strengthening the local currency, Finance and Economic Development Minister Professor Mthuli Ncube has said.
Responding to questions from Parliamentarians in the National Assembly on Wednesday, Minister Ncube said he was aware of price hikes that have resulted from exchange rate instabilities.
“I am aware of the galloping prices, which are hurting the poor, and the gap between the parallel market and the official rate,” he said.
“The first order of business is to tackle that gap between the parallel market and the official auction rate.
“Several measures have since been put in place to eliminate the gap that exists in the allocations on the auctions, and it was successfully done this week where Treasury stepped in to clear the backlog, making sure that there is certainty and credibility around the auction.”
Minister Ncube said Government has also increased interest rates to deter foreign currency speculators.
Online Reporter