GOVERNMENT has set up a Currency Stabilisation Taskforce as part of measures to arrest exchange rate volatility and reduce inflation.
Finance and Economic Development, Professor Mthuli Ncube, announced the move at a press conference in Harare today. The recent exchange rate volatility has seen US$1 hovering around ZW$40 for electronic money and ZW$25 for cash. Similarly, the rand has also jumped to ZW$2,50 for mobile money from about 1:1 at the beginning of the year. The minister said the trend has translated into unsustainable levels of inflation, evidenced by the recent spike in prices.
“In this regard, Government is taking measures to stabilise the exchange rate and bring down inflation to sustainable levels in order to achieve macro-economic stability,” said Prof Ncube.
“To stabilise the exchange rate and hence, lower inflation, Government has decided to implement a holistic package of key policy measures.
“In this regard, a Currency Stabilisation Taskforce has been set up.”
The taskforce will be spear-headed by the Ministry of Finance and Economic Development and the Reserve Bank of Zimbabwe, and will include members of the Monetary Policy Committee (MPC) and Presidential Advisory Committee (PAC).
Prof Ncube is set to chair the taskforce, which is scheduled to meet at least once a week to review the conditions in the markets, monitor the behaviour of key variables such as the exchange rate and inflation, and to ensure that outlined measures are expeditiously implemented.
“The Taskforce will put in place additional policy measures, where necessary,” he said.
The minister said macro-economic stability was an essential component of the Transitional Stabilisation Programme (TSP), a critical blue-print for economic growth and achievement of the goals Vision 2030.