By Davison Vandira
The private sector has commended fiscal and monetary authorities for instituting measures which have curtailed excessive money supply growth culminating in the obtaining exchange rate stability.
The Zimbabwe National Chamber of Commerce (ZNCC), the umbrella body of the country’s private sector, is one such entity that has been impressed by the current macroeconomic stability.
This comes in the wake of a loss of appetite by companies on the RBZ auction system which saw only US$11 million being allocated this week against a weekly average of US$35 million over the past two years.
The private sector is therefore convinced that this will give businesses a firm launchpad in the resuscitation and revival of the country’s industrial base towards the achievement of national objectives.
ZNCC President Mr Mike Ngamungeremu, said, “It is quite encouraging to note that the obtaining situation in the market is pro-business as past exchange rate volatility made planning difficult and currently we are also happy about the availability of the greenback on the interbank hence the reduction of pressure on the RBZ auction system.”
Considerable changes of fortunes on parallel market rate movements since the beginning of August were given impetus by Treasury which read the riot act on government suppliers who were fuelling arbitrage opportunities.
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