CZI hosts Reserve Bank Governor over challenges

CZI organized and hosted an extra ordinary National Council Meeting, inviting the Reserve Bank of Zimbabwe Governor Dr. John Mangundya and Officials from the central bank. The meeting focused on the main challenge of foreign currency shortages and allocations.CZI organized and hosted an extra ordinary National Council Meeting, inviting the Reserve Bank of Zimbabwe Governor Dr. John Mangundya and Officials from the central bank. The meeting focused on the main challenge of foreign currency shortages and allocations.

The Governor addressed on the current monetary issues and touched on how banks are allocating foreign currency to non-productive sectors, which is restricting access to foreign currency for the sectors that are in great need of it continue with production locally. 
Preservation of foreign currency was highlighted as of paramount importance. The Governor indicated that the manufacturing sector is amongst the biggest foreign currency users and only contributes 5% to the total exports. However, CZI highlighted that had the local manufacturing not been producing, much more foreign currency would have been required to import the good that local industry is producing.

In an effort to increase the foreign currency in the country, the Central Bank is working with PTA and the Afrexim Bank to bridge the gap during the tobacco off-season. The Governor also highlighted on the mismatches between forex resources and the local RTGS balances. 

However, several questions were directed to the Governor by members. These include:-
• issues  to do with the rapid rise of corruption and indiscipline, how it has affected the economy and how it can be tackled, 
• Any action by the RBZ on the behavior of local banks on forex allocations as well as on import substitutions for instance generation of solar energy.

In response, the Governor mentioned the difficulties of doing business in an environment like the one Zimbabwe is currently in. He also talked on the lack of accountability and responsibility as one of the key issues affecting the country’s business performance.

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