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*Forex Rate "Stability" Unsustainable, Says Tendai Biti* *Follow Pindula on WhatsApp for daily new updates* https://whatsapp.com/channel/0029Va84dngJP21B2nWeyM3v?ua 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. ---------- *HOT DEALS:* *itel A70 - (128GB, 3GB RAM) $89,* *itel A70 - (256GB, 4GB RAM) $99* *itel P40 (128GB, 4GB), (6000mAh) $99* *itel P40 (64GB, 4G), (6000mAh) $93* Cash on Delivery in Harare & Bulawayo. Tinotumira kwamuri inosvika. WhatsApp: 0️⃣7️⃣8️⃣3️⃣ 4️⃣5️⃣0️⃣ 7️⃣9️⃣3️⃣ ---------- Among other things, the MPC resolved to keep the Bank policy rate at 200% per annum. The MPC said it had “noted with satisfaction that a combination of the tight monetary policy stance, favourable uptake of gold coins, effective monitoring and enforcement of market discipline… had resulted in the stability of the exchange rate and a decline in inflationary pressures.” Biti argued that the “stability” will soon be a thing of the past as the government will need to pay civil servants and fund election promises resulting in an increased broad money supply. Said Biti: > The economy can not be fixed by short-term measures that delay a crisis. Controlling money supply through suspension of contractual payments can buy short-term relief but contractors will have to be paid. > Further, the taps will open soon to support Command Agriculture Year-end bonuses must be paid & as Zim gets closer to an election there will be a floodgate of broad money as election promises are monetized. > The rate will implode unless the Zim$ 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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