New Finance Minister Speaks On Zim Dollar Return, Clearing International Debt, Building Credit Lines
Speaking to journalists after being sworn in, Finance and Economic Development Minister Mthuli Ncube said he will focus on ending the cash shortages, clearing international debt arrears and building credit lines.
He said he would want to introduce a Zimbabwe dollar that is stable. He said steps that will be taken towards introducing the Zimbabwe dollar will be in the monetary policy. Said Ncube:
I will be rolling out a plan on arrears clearance. Coupled with that is building credit lines globally. Internally, it is about fiscal consolidation and making sure that on the expenditure side we live within our means or move towards that. It is a process, not a big bang approach. On revenue collection, we need to strengthen our tax collection systems to restore fiscal balance.
On the monetary policy front, the idea is to make sure that monetary policy and fiscal policy complement each other. One is not an albatross by substitute for the other. Monetary reforms will be looked into with urgency and ultimately we would like to have a Zimbabwe dollar that is stable, that we have confidence in and you will hear in the monetary policy the first steps towards achieving that. The issue of currency reform will be underway but that alone is not adequate. It needs a second leg; it works with fiscal policy. So fiscal reforms together with currency reforms have to work together to create the stability.
Prof Mthuli also spoke about cash shortages saying they are a symptom of the poor macro-economic picture on the fiscal front and monetary front.