The Sunday News
Dumisani Nsingo, Senior Business Reporter
THE Government will not hesitate to deal decisively with individuals and companies causing distortions on the financial market as it was crippling efforts to revive the country’s economy.
Officially opening the 13th Zimbabwe International Trade Fair (ZITF) business conference on Tuesday Vice President Dr Constantino Chiwenga said the Government was making concerted efforts to address the disparities existing on the financial market as it has ripple effects on the country’s economy.
“On the monetary policy front the establishment of the interbank foreign currency in February 2019 discarded the fixed 1:1 exchange rate between the US dollar and the bond note in favour of the market determined rate. The absence of a formal market for foreign exchange was causing distortions and the misallocation of resources in the economy,” he said.
VP Chiwenga said the Government has noted with concern the increase of cartels fuelling distortions on the financial market through fuel the parallel market.
“The market based framework for definition of the exchange rate is expected to facilitate financial sector stability, contain inflationary pressures and build public confidence these noble objectives will however, not be attained if as individual and corporate we continue to sustain the parallel market in competition with the formal market by engaging in underground activities,” he said.
He said the Government was aware of some of the individuals causing financial market distortion.
“Those who have been practicing this, all I can say is if you are a Zimbabwean return that money back so that we can treat you with some “kiddy gloves” but if you want “hard gloves” we know how to do it. The parallel market continues to overshadow the formal market because there are buyers and sellers who are willing to participate in these activities. As responsible and patriotic citizens we however, ask ourselves whether our actions are in the best long term interests of the nation as a whole as we partake in parallel market activities,” said VP Chiwenga.
