RBZ To Maintain Fuel Exchange Rate For 2 Weeks To Curtail Fuel Price Fluctuations.

4 years agoMon, 03 Jun 2019 01:36:47 GMT
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RBZ To Maintain Fuel Exchange Rate For 2 Weeks To Curtail Fuel Price Fluctuations.

Energy and Power Development Minister Fortune Chasi on Wednesday said that the Reserve Bank of Zimbabwe (RBZ) is taking measures to stabilise fuel prices. He said that the measures included maintaining the foreign currency exchange rate for fuel for two weeks to reduce fuel price fluctuations.

Minister Chasi said that price fluctuations were worsening the situation. He said:

One of the challenges we’re having in supplying fuel is related to fuel price fluctuations. In the past, fuel price changes were caused mainly by the changes in the price of fuel on the international market but such changes were usually minimal. 

Now the interbank rate, at least up to the time it stabilises, will also be causing fuel price changes. Currently, the changes are upwards and more significant than the price changes caused by the international prices of fuel. To curtail the fluctuations in the short-term, the Reserve Bank will hold the fuel exchange rate constant for two weeks.

Minister Chasi also opined that the long term solution to the issue was to establish a Fuel Stabilisation Fund which will act as a subsidy to cushion consumers from fuel price increases.

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