Mnangagwa faces a tough bid for re-election in an August 23 vote amid surging inflation and a Zimdollar that has weakened by more than 80% since the beginning of the year.
Some analysts had argued that the central bank was compounding the country’s currency crisis through foreign currency borrowing that was not under parliamentary oversight.
“The (central) bank shall only borrow foreign currency on behalf of the state at the instance of the (Finance) Minister and not on its own behalf,” Mnangagwa said in a statement issued late on Thursday.
The central bank has in the past borrowed from regional banks to fund imports of fuel, fertiliser, edible oils and other basic goods.
The government recently announced a raft of measures to stabilise the Zimdollar and tame inflation, including transferring some functions of the central bank to the finance ministry.
The southern African country has seen bouts of hyperinflation and currency volatility over the past 20 years, blamed on the government’s poor handling of the economy and policies such as former president Robert Mugabe’s seizure of farms from whites to resettle landless Blacks.
Some economists, however, say the measures to shore up the local currency will start paying off mid-next month and de-dollarisation will start by the end of the year. –Reuters/Own
(68 VIEWS)
The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…
An Indian think tank has described Starlink, a satellite internet service provider which recently entered…
Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…
Zimbabwe is among the top 30 countries in the world with the widest gap between…
Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…
Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…