Auction System To Stabilise Currency And Prices - Mthuli

Finance and Economic Development Minister Mthuli Ncube has blamed “greediness” for the current currency and price instability in the economy.

Speaking during an interview with NewsDay on Wednesday, Ncube asserted that the fundamentals needed to have a stable currency are already in place. He said:

Price stability is linked to currency stability, so the first order of business becomes to stabilise the currency and the auction system that we have introduced is part of that process.

Part of that process includes bringing currency value, stabilising the currency and once that is established and then that should engender some sort of stability in prices as well.

If you look at our fundamentals, our fundamentals are actually strong in the sense that there is no budget deficit, growth in money supply is under control.

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Ncube said Zimbabwe’s inflation is being driven by people engaged in speculative behaviour, greed, money laundering and all manner of illicit behaviour.

He said there was hope that the auction system introduced by the central bank on Tuesday would bring order in the economy and lead to currency stability and that of prices.

More: NewsDay