Economists say the local industry is set to benefit immensely from the fair alignment of the exchange rate as pronounced in the Monetary Policy Statement presented this Wednesday.
They believe that measures put in place are set to encourage export growth as the market determined exchange rate improves external competitiveness of domestic producers.
An industrialist, Mr Antony Mandiwanza predicts the adopted system will go a long way in rebalancing the economy and setting it on a sustainable growth path.
“As industry players we welcome the liberalisation of the exchange rate as this will allow industries to trade freely on the market to enhance their operations,” he said.
Another industrialist, Mr Oswell Binha concurred with his counterpart and commended the central bank for incorporating recommendations from the industry.
Others said the monetary policy statement is going to kill the parallel exchange rate market, increase the flow of foreign currency in the economy and stabilise prices.
“The interbank forex market will ensure that companies and individuals access foreign currency from formal channels. This is also expected lead to the disappearance of pricing distortions, meaning stabilisation of price,” respected economist, Professor Ashok Chakravat said.
“The monetary policy statement has put an end to the widespread false reports of the reintroduction of the local currency but is now setting the pace to compliment the fiscal reforms which are being implemented by treasury,” another economist, Mr Tendai Chinamasa said.
According to the RBZ, the interbank market will manage the exchange rate, meaning that there are no expectations of skyrocketing rates because the monetary authorities can determine how much can be traded on a particular day.
It is now clear that account holders can freely trade their RTGS dollars into foreign currency and vice versa, putting an end to speculation of the nature of currency that a person holds.
The monetary policy statement is a sucker punch and will set the tone for the reconfiguration of the economy and set the tone towards economic growth, job creation and improved capacity utilisation.