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*Forex Rate "Stability" Unsustainable, Says Tendai Biti* *Follow Pindula on WhatsApp for daily new updates* https://whatsapp.com/channel/0029Va84dngJP21B2nWeyM3v?yn 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. Biti, who is CCC deputy president, made the comments in response to a statement issued by the Reserve Bank of Zimbabwe (RBZ) this Monday outlining the resolutions made by its Monetary Policy Committee (MPC) on Friday last week. ---------- Latest itel S24 available on Pindula: 128GB storage, 4GB RAM $119 USD WhatsApp: +263715068543 Calls: 0772464000 Buy Online: https://www.pindula.co.zw/market/itel-s24-128gb-22-20240426142756795795/?s=wanews ---------- Among other things, the MPC resolved to keep the Bank policy rate at 200% per annum. The MPC said it had “noted with satisfaction that a combination of the tight monetary policy stance, favourable uptake of gold coins, effective monitoring and enforcement of market discipline… had resulted in the stability of the exchange rate and a decline in inflationary pressures.” Biti argued that the “stability” will soon be a thing of the past as the government will need to pay civil servants and fund election promises resulting in an increased broad money supply. Said Biti: > The economy can not be fixed by short-term measures that delay a crisis. Controlling money supply through suspension of contractual payments can buy short-term relief but contractors will have to be paid. > Further, the taps will open soon to support Command Agriculture Year-end bonuses must be paid & as Zim gets closer to an election there will be a floodgate of broad money as election promises are monetized. > The rate will implode unless the Zim$ is floated & full open use of the US$. A permanent lasting solution is required and not cheap mascara. > Government remains the biggest generator of broad money supply due to an expansionary fiscal policy. > They can’t live within their means & that is the challenge. Withholding payments, arresting or threatening business people can never be a sustainable tool of macro stability. _If you found this article useful_ *Please support Pindula by forwarding to friends and groups*
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