Business Leaders Applaud RBZ’s Tight Monetary Policy for Exchange Rate Stability

Business leaders have praised the Reserve Bank of Zimbabwe (RBZ) for its strict monetary policy, which has helped stabilize the ZiG exchange rate against the US dollar.

Their remarks were made during presentations to the Parliamentary Portfolio Committee on Budget, Finance, Economic Development, and Investment Promotion, following the recent Monetary Policy Statement by RBZ Governor Dr. John Mushayavanhu.

Confederation of Zimbabwe Industries (CZI) economist Dr. Cornelius Dube emphasized the need for economic stability, stating:

“A key positive is the tight monetary policy stance. Stability must remain a top priority, and the decline in the parallel market premium is a promising sign. If this trend continues, confidence in the local currency could gradually improve.”

Dr. Dube also welcomed the introduction of interest payments on both ZiG and US dollar savings accounts. However, he noted that the rates—5% for ZiG and 2.5% for USD—are still lower than banking fees, which could limit their appeal.

Zimbabwe National Chamber of Commerce (ZNCC) president Mr. Tapiwa Karoro commended the RBZ’s steps toward a market-driven exchange rate, saying:

“The central bank has taken steps in the right direction, though full market-driven exchange rate determination will take time. This transition requires a well-defined de-dollarisation roadmap with clear milestones, allowing businesses to align with monetary and fiscal policies.”

Meanwhile, Confederation of Zimbabwe Retailers board member Mr. Sevious Mushosho suggested that the RBZ introduce a foreign currency facility for retailers. He proposed allowing businesses to access forex at interbank rates by processing a portion of their sales in ZiG. This, he argued, would help address currency mismatches between revenue collections and supplier payments.

Additionally, business groups raised concerns about the high costs of regulatory compliance, which they say hinder operations. They recommended offering incentives to encourage informal businesses to formalize.

Addressing these concerns, President Mnangagwa has already directed authorities to reduce compliance costs to improve business competitiveness.

ALSO READ : Murehwa Man on Trial Over Suspicious Wealth Accumulation