Monetary policy statement hailed

by Rudo Saungweme

Zimbabweans have applauded monetary policy statement presented by Reserve Bank of Zimbabwe Governor Dr John Mangudya together with the fiscal measures for reversing dis-equilibrium by Minister of Finance and Economic Development Professor Mthuli Ncube.

The monetary policy which addressed issues to do with cash shortages and price hikes among other key areas was described as a roadmap to Zimbabwe`s economic recovery by netizens.

Dr Mangudya stated that the monetary policy statement needed to be supported by a package of measures to reduce fiscal imbalances, thus the presence of Professor Ncube who presented on measures of reversing dis-equilibrium.

Professor Ncube indicated that “bold decisions need to be taken on the reforms in order to stimulate growth and sustainable development.”

 He reviewed Money Transfer Tax from 5 cents per transaction to 2 cents per dollar, effective 1 October 2018. Prof Ncube said, “The increase in informalisation of the economy and huge increase in electronic and mobile phone based financial and RTGS transactions means that there is need to expand the tax collection base and ensure that the tax collection points are aligned with electronic mobile payment transactions and RTGS system”

Supporting the idea on his twitter account, Francis Chinjekure @Wamagaisaaa posted, “The introduction of money transfer tax from 5 cents per transaction to 2 cents per dollar is great. People should pay for their services. Why do people want everything for free? Having services for free is what has led us to where we are right now. Let’s embrace the measure and do likewise.”

Commenting on the issue of foreign truckers who are now expected to pay their fuel in foreign currency, netizen @mmmawere tweeted, “The move by the Governor for fuel truckers to pay fuel in foreign currency will assist the country in generating enough hard cash to import more fuel that is needed in the country. This is because our country imports fuel in foreign currency.”

One informal trader simply known as Mrs Muchena also commented the monetary policy statement saying, “Yesterday’s monetary policy reflects our economics. Reforms are never easy. They may appear to be difficult now but I can see light at the end of this tunnel.”

The new dispensation`s thrust is to attain a middle income economy by 2030.  This has seen Government implementing measures that may be harsh in the short term but will be luminous in the middle and long term.