ZNCC to meet over cash shortages

THE Zimbabwe National Chamber of Commerce (ZNCC) will next week host a meeting in Bulawayo to discuss the major drivers of cash shortages in the economy and proffer sustainable solutions, with Finance minister Mthuli Ncube the star attraction at the event.

BY MTHANDAZO NYONI

According to a concept paper seen by NewsDay, Reserve Bank of Zimbabwe governor John Mangudya, Bulawayo Provincial Affairs minister Judith Ncube, Industry and Commerce deputy minister Raji Modi, are among the speakers.

“Aims and objectives (of the event are) to come up with a common position on the best currency framework to adopt as a nation; to deliberate on what are the best conditions for reintroduction of local currency as well as the timing,” reads the paper in part.

The event also aimed at interrogating the foreign currency allocation framework with a special focus on the existing import priority list. It also aims to come up with a white policy paper position chronicling how we intend to save the local industry in the face of acute foreign currency shortages.

Zimbabwe is grappling with acute foreign currency shortages exacerbated by the domestic cash crisis. This has left a number of stakeholders either blaming the use of foreign currency, introduction of the bond notes as a medium of exchange or sabotage by speculators who trade in currency.

“The million dollar question is: how do we get out of this fix? Are we not running out of the road? Should we continue kicking the can down the road?

“The event seeks to identify areas of improvement in relation to currency issues as we approach 2019 and will provide an opportunity to deliberate on the following among others: maintaining parity of the US Dollar, RTGS and its sustainability; domestic financing of the fiscal deficit; re-engagement with multilateral institutions — is it yielding results? is joining the Rand Monetary Union and option?” said the paper.