MASVINGO-Government has set up a liquidity committee to stabilize the local currency due to spiralling inflation, Deputy Minister of Finance and Economic Development Clemence Chiduwa said.
He said this on Friday at Chevron, A Regency Group Hotel at a business community engagement meeting organised by Zanu PF Masvingo Urban constituency candidate Wellington Mawende.
Chiduwa said the role of the Committee is to monitor the amount of money in circulation.
Zanu PF heavyweights such as Masvingo Minister of State Ezra Chadzamira, party chairperson Rabson Mavhenyengwa, Central Committee member Ephraim Gwanongodza and several businesspeople attended.
Chiduwa applauded the committee for a stellar job as the ZWL$ gains value. The interbank rate has improved in recent weeks.
“We want your banks to be aware that the Zimbabwean dollar is kept by the Reserve Bank of Zimbabwe (RBZ). We use open market operations that serve to ensure that the economy continues to flourish without letting the hard currency flood the market. We would want our local currency to strengthen,” he added.
Chiduwa also said Government is carrying out projects using the ZWL$ as it is stable. He said the ultimate objective is to ensure that the local currency allows businesses to plan and have faith in their money.
“What we need to develop a country is both fiscal and monetary policy. For the first time, we were able to construct our roads using Zimbabwean dollars, from Harare to Beitbridge, Harare to Chirundu. We have already started the dualisation of Mutare-Plumtree road using our local currency and construction of Beitbridge to Victoria Falls road is underway and this is the magic emerging from using our currency,” he said.