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Monday, June 5, 2023

IMF commends monetary and fiscal reforms

Story by Davison Vandira

THE International Monetary Fund (IMF) has concluded its mission in Zimbabwe, with the team impressed by the monetary and fiscal reforms that have been implemented for economic growth.

Zimbabwe is constantly under the IMF radar, specifically the institution’s staff monitored programme, meant to appraise the efficacy of the country’s policies.

The Fund concluded its Article IV of its mission to Zimbabwe which took place from December 1 to 15.

The report has commended the macro-economic stability currently obtaining in the economy attributed to the tight monetary policy stance which the Reserve Bank of Zimbabwe has been implementing, resulting in the curtailment of excessive money supply growth, which was the source of inflation.

The development comes as inflation has fallen to 255 percent year on year, while month on month figures are now at 1.8 percent, which was last achieved four years ago.

On the fiscal front, Treasury received a pat on the back for streamlining its procurement processes by introducing value for money audits as they were previously prone to abuse and became the source of exchange rate instability.

Due to macro-economic shocks that the country experienced since the beginning of the year, the multilateral fancier expects the country to register a GDP growth of about 3.5 percent.

To enhance the monetary and fiscal prudence in the economy, the IMF has also advised authorities to strengthen regulatory frameworks that are not susceptible to abuse.

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