Our economy, it would seem, runs more on sentiment than on actual fundamentals.
As shown above, all our fundamentals are comparatively stronger, both when measured against our past and against sister economies in our region and on our continent.
They point in the right direction of sustained and sustainable recovery and growth.
There is thus a stark contradiction between stable fundamentals and unstable, nay unhelpful sentiment.
Surely confidence, or lack of it, must have some basis in measurable fundamentals which shape the future of economic activity in the country. I concede that our experiences in the past are chequered.
In 2008 and more recently in 2019 when we carried out currency reforms, value was lost.
This experience, while residual, remains potent to levels of conditioning our behaviour as economic players.
Except the rise in foreign currency deposits in our banking sector suggests confidence is returning.
This confidence must be nurtured, as, too, should business confidence in the auction system as a source of foreign currency for vital imports that support production.
Equally, we must continue to set aside earnings from our exports so we boost our reserves until we reach a minimum of three months import cover.
This Government is determined to do, including continuing with a tight fiscal policy to maintain the current surplus.
As already indicated, a raft of measures will be announced shortly, including measures to increase confidence in the local unit.
De-dollarisation will be managed carefully to avert disruptions.
As they say, it takes two to tango.
While Government is doing all these things and a lot more, those in business must exhibit greater probity and show greater sense of responsibility.
No one, least of all business, benefits from macroeconomic instability. Speculative behaviour using currencies accessed from our auction system at official exchange rate stand to hurt all of us, business included. We must desist from such unhelpful behaviour.
Like I have already said, Government is committed to defending value in the economy so there is no return to the horrors of 2008 and 2019.
Going forward, we must put the bad past behind us, and chart a more hopeful future which is predicated on real fundamentals, not nebulous fears or sentiments.
It has come to our attention that some players are using many illicit avenues, including pretexts and subterfuges of grain imports to externalise our hard-earned foreign currency.
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