Multi-currency regime extension to boost macroeconomic stability: Analysts

Staff Reporter

Economic analysts have applauded the Second Republic’s decision to extend the multiple currency regime to 2030, stating that it will bolster macroeconomic stability and spur national development.

The Second Republic Administration, led by President Emmerson Mnangagwa, announced the extension of Zimbabwe's multi-currency regime until 2030. This move extends the initial endpoint which had been set for 2025.

"This move will help consolidate macroeconomic stability and development. It signals commitment to policy continuity, which is vital for sustaining economic growth," said leading economist Dr. Tonderai Makumbe.

The extension is also expected to have a positive impact on civil servants and Government workers.

Dr. Makumbe added, "This will broaden access to US dollar loans for civil servants and Government workers, hence improving their financial situation."

Investor confidence is also projected to receive a considerable boost due to this development. Financial analyst, Rumbi Chidoori commented, "The decision will go a long way in improving the ease of doing business in Zimbabwe and attracting Foreign Direct Investment (FDI)."

Another economic analyst, Farai Machingura, lauded the decision, stating, "Policy makers should be commended for taking heed to the market's call to extend this currency regime. It shows that the Government is responsive and willing to adapt to the economic realities on the ground."

Machingura also added that, amid the expected economic benefits, the move also promises potential social benefits.

"The multi-currency regime provides a cushion against hyperinflation, ensuring that citizens' savings and income retain value," said Machingura.

Furthermore, Machingura said, “The extension can help in mitigating the effects of economic shocks, providing a safety net for the Zimbabwean economy. It allows for a more stable and predictable business environment, which is critical for long-term planning and investment.”

Meanwhile, as the country charts its path towards Vision 2030, the extension of the multi-currency system signifies a significant step in the right direction.

Economic analysts and the business community alike, are optimistic about this development, viewing it as a practical and effective strategy to reposition Zimbabwe's economy on a path of sustainable growth and development.