Discipline now needed to keep prices stable as Zimbabwe has US$1.9 billion in banks

Q & A

HON. TEKESHE: My question goes to the Minister of Finance and Economic Development.  Exchange rates determine prices.  In this country at the moment, our exchange rate is very stable.  I want to know why prices keep going up yet our exchange rate is very stable.

THE MINISTER OF HIGHER AND TERTIARY EDUCATION, INNOVATION, SCIENCE AND TECHNOLOGY (HON. PROF. MURWIRA): I wish to thank Hon. Tekeshe for this very important question which is basically a national moral question where it is very important that we take note that our exchange rate is stable.  As a people of this country, we really need to have discipline, be empathetic and have to be unselfish.  What we are saying is that if our fundamentals are right, all business people and citizens have to celebrate that by stabilising all issues including prices because industry utilisation in terms of capacity utilisation has gone up.  You can see that most of the products that are on our shelves are Zimbabwean products and this is something to celebrate.   So when prices of certain goods are going up against the trend of stabilising the economy, that is what we call indiscipline in the business community.  It is misinterpretation of capitalism where we are saying people cannot profiteer carelessly.  I think that kind of discipline is needed in a nation and Hon. Members can help us spread that message across the economy to talk about discipline for national stability and advancement.  I thank you.

HON. TEKESHE:  I would like to find out from the Minister if they are making supply and demand take its course and not fixing prices.  Are they able to supply the foreign currency which is needed in the country?  If not, why has the exchange rate remained stagnant because it is supply and demand that should determine the rates?

THE HON. SPEAKER:  I thought the Hon. Minister answered the question when he spoke of business ethics and indiscipline.

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