Tinaye Agere
Theseus Shambare
The Confederation of Zimbabwe Retailers (CZR) has lauded the recent initiatives by the Monetary Policy Committee (MPC) to introduce more flexibility in monetary policy.
In a statement released on Monday, CZR president, Mr Denford Mutashu, praised the Reserve Bank of Zimbabwe (RBZ) for maintaining a delicate balance in its policies while navigating the complex economic landscape.
“We recognise the challenges the RBZ faces in addressing the diverse needs of our economy,” Mr Mutashu said. “The MPC’s decisions have demonstrated a commitment to stability and growth.”
While some advocate for full dollaristion, others support complete dedollarisation, the CZR, he said, maintains its stance that the multicurrency regime should remain in place until 2030.
Mr Mutashu emphasised that dedollarisation was only feasible when the economy can generate sufficient foreign currency to back demand.
“A premature transition could have catastrophic consequences for businesses and the broader economy,” he warned.
Mr Mutashu highlighted several potential risks associated with immediate dedollarisation, including fuel shortages, shortages of basic commodities and threats to businesses and banks.
He urged the RBZ to adopt a gradual approach to dedollarisation, focusing on strengthening the Zimbabwean dollar, addressing structural bottlenecks and ensuring policy consistency.
“We believe that with the right approach, Zimbabwe can achieve monetary sovereignty in a manner that supports long-term economic growth and stability,” he said.
Online Reporter