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Confederation of Zimbabwe Industries Welcomes Inflation Decline, Zim Dollar Recovery

Confederation of Zimbabwe Industries Welcomes Inflation Decline, Zim Dollar Recovery

The Confederation of Zimbabwe Industries (CZI) has welcomed the decline in monthly inflation alongside the stabilisation of the foreign currency exchange rate on the parallel market.

The monthly inflation rate in August 2022 dropped to 6.6% from the July 2022 rate of 16.1% while the exchange rate has hovered between ZWL$700 to ZWL$800 against US$1 on the parallel market over the past few weeks.

This has been attributed to interventions by monetary authorities that include the introduction of gold coins and the move by the government to stop payments to its suppliers.

Speaking exclusively to NewZimbabwe.com, CZI president Kurai Matsheza said that the developments will go a long way in providing a strong basis for business growth. He said:

These trends seen in isolation are quite good. Indeed, nobody enjoys seeing inflation galloping and exchange rates going haywire. It is indeed a very welcome development.

Matsheza, however, lamented the shortages of the Zimbabwe dollar in the economy saying this has resulted in depressed demand for goods. He said:

So the downward side which must also be considered are the critical shortages of the Zim$ in the market.

We have seen local currency sales going down for reasons we believe to be prompted by the rush to purchase gold coins and the move by the government to stop payments to its suppliers.

Meanwhile, former Finance Minister Tendai Biti has challenged the government to find a lasting solution to current economic challenges instead resorting to what he considers unsustainable short-term measures.

He said the “stability” will soon be a thing of the past as the government will need to pay civil servants and fund command agriculture and election promises which will result in an increased broad money supply and trigger exchange rate volatility.

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15 Comments

As I see it. 1 month ago

Wishful thinking..


Celestial 1 month ago

False news


gamba 1 month ago

Biti is right. Most of his predictions always come to be true. He understands the dynamics of our economy this man.


36 1 month ago

Does stopping paying suppliers look like a permanent solution to this economic crisis?For how long will the suppliers continue providing service without being paid kkkkki Kurai Mutshaza czi president ucabanga langemva💩


clueless 1 month ago

economy yezim is slowly normalising soon everything is going to change if you or work together like ant's building there home


Ma1 1 month ago

Govt is trying to treat diarrhoea by stitching the anus.... For how long will service providers keep providing services without pay..... And for how long will companies keep producing without demand or buyers in the economy..... We still have mountains to pass before we celebrate....... All the way let's register to vote


clueless 1 month ago

ma1 hamayangu mmmm wangu kuvota kuvhotera aniarkukupadollar here uyu mukomana mese munomuda henyu asi chamusingazive ndechekuti i puppet ye america once he take over you must accept to be slaves of America & it's allies so put that in mind


36 1 month ago

Kkkkkkkkkkki clueless you are clueless for sure and misinformed ukateedzera zwaitaaurwa nanaBob uchagara wakasara se****.Usafurirwe ,usanyeperwe n usavundusirwe u have a right .

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5 1 month ago

@clueless it's better to be american slaves than to be chinese fongkong slaves


good fighter 1 month ago

kuita suppoter we CCC chinenge chinhu chakaoma i guess.you have to be negative always


good fighter 1 month ago

ndiwe unotozviziva kuti ndinosvuta mbanje

Manikiniki 1 month ago

So we should clap hands and say inflation is going down when the Zanu run Zupco just doubled its fares a day or so ago, just one example. I think you have allowed yourself to be brainwashed by scuds and mbanje you are given in your violent Zanu campaigning sprees.

🤠 1 month ago

5 taura hko fongkong slaves no


,,, dott 1 month ago

Opposition party will never rule zimbabwe 🇿🇼


Tkt says 1 month ago

Paying suppliers doesn't HELP. very true
But what they mean there is paying for subsidies
Like what you have realized of late that ZUPCO was having problems in providing its services. The Govt simply stopped subsidizing it



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