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Cletus Mushanawani
News Editor
THE Reserve Bank of Zimbabwe Governor, Dr John Mangudya, has bemoaned delinquent behaviour caused by past experiences for influencing the high exchange rates on the parallel market.
Speaking during a public lecturer at Manicaland State University of Applied Sciences this morning, Dr Mangudya said efforts are being made to address all the challenges affecting the exchange rates in the country.
“All the economic fundamentals in the country are pointing in the right direction, but delinquent behaviour caused by past experiences is influencing the high exchange rates on the parallel market. We have realised that some individuals were borrowing money for speculation purposes.
“Some of them were using the borrowed money to buy foreign currency on the parallel market resulting in the high exchange rates that we are seeing on the parallel market. We want the auction and interbank rate to be the same so that individuals and SMEs can go to their banks and access foreign currency on a willing buyer and willing seller basis,” said Dr Mangudya.
He said it is too early for the country to rely on the Zimbabwean dollar as the sole currency.
“A mistake was made to completely disregard the Zim-dollar in 2009. We should have allowed it to operate with the multiple currencies that were in use during that time. Partial dollarisation will help our industries to recapitalise and produce more. Countries like the Democratic Republic of Congo are partially dollarised and it is working very well there. We need financial discipline in this country,” said Dr Mangudya.
Online Reporter