Harare – The Confederation of Zimbabwe Industries has implored the government to address the confidence gap in the economy to encourage investment and business continuity in response to the ongoing macro-economic challenges.
In an industry analysis of the mid-term monetary policy statement addressed to its members, CZI highlighted that mixed policy messaging and signals, especially where foreign exchange and inflation are concerned, will further erode “this” already low confidence.
As such, CZI said both the fiscal and monetary policy should aim for stability in the following areas; foreign exchange market, money market and goods and services markets.
Despite a raft of monetary and fiscal measures government has introduced in the recent past, inflation has continued on an upward trend while the ZWL$ also continue depreciating in value at an alarming pace.
Month to date, the exchange rate have moved from US$1:ZW$12.5 to ZW$20.5, representing a 64% devaluation in the ZW$ in 20 days.
Meanwhile, implied year-on-year inflation as at August 2019 stood at 288.6% from 230.4% in the previous month.
In order to address the massive confidence deficit, the Reserve Bank of Zimbabwe (RBZ) together with the Fiscal Authorities have instituted some measures to boost confidence in the economy to include a new RBZ Board, a Monetary Policy Committee and an Effective Communication Strategy by RBZ.
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Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, firstname.lastname@example.org and email@example.com.