Norton legislator Riuchard Tsvangirai yesterday accused Deputy Finance Minister Kudakwashe Mnangagwa of lying after Mnangagwa told parliamentarians to be patient and wait for the long-awaited Monetary Policy Statement as it would address key challenges on inflation and the exchange rate.
Tsvangirai had asked what the government was doing to address sky-rocketing inflation.
Mnangagwa said inflation was being fuelled by exchange rate volatility but this would be addressed when the government announces its monetary policy which will have comprehensive currency reforms.
Mnangagwa could not, however, be cornered into answering when the monetary policy would be announced.
It is usually announced in the first two months of the year but Zimbabwe is now in the last month of the first quarter.
Full Q&A:
HON. TSVANGIRAI: Thank you, Hon. Speaker and good afternoon.
THE HON. DEPUTY SPEAKER: Good afternoon.
HON. TSVANGIRAI: My question is directed to the Minister of Finance, Economic Development and Investment Promotion. What is the Government doing to reduce the high cost of living and sky-rocketing inflation?
THE DEPUTY MINISTER OF FINANCE, ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTION (HON. D. K. MNANGAGWA): Thank you Madam Speaker and thank you Hon. Member for that question of national interest. Madam Speaker, the issue of inflation in Zimbabwe is tied to exchange rate volatility. You will find that the rising components of the prices is usually tied in to the Zimbabwe dollar component. As mentioned, I think a few weeks ago, Government is going to be going through some currency reforms, some reforms of our exchange rate management systems. This will be coming through the Monetary Policy Statement in the next few weeks.
So, we would like for our Parliamentarians to be patient and wait for that Monetary Policy Statement that will have some reforms that will speak to the rising inflation and exchange rate volatility. I thank you.
HON. TAFANANA ZHOU: Thank you Madam Speaker Ma’am. My supplementary question to the Deputy Minister pertains to other Government departments that are charging services in foreign currency such as the Central Vehicle Registry (CVR). You can only have vehicle registration in USD and you cannot do so using local currency. I thank you. – [HON. MEMBERS: Inaudible interjections.] –
THE HON. DEPUTY SPEAKER: Order, order Hon. Members, please may we have order in the House.
HON. D. K. MNANGAGWA: Thank you Madam Speaker, Ma’am. According to our multi-currency regime, the policy is, anyone trading would be able to charge in any currency they want but when you receive, you are supposed to receive any other currency, be it the Zimbabwe dollar or forex. So, if there are other Government departments or parastatals that are only charging in forex, they are operating outside the law.
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