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Ministry sends wake-up call to cabinet

Loughty Dube

AS Zimbabwe’s economic woes continue unabated, the Ministry of Finance last week sent strong proposals to cabinet on measures to avert a complete meltdown.

erdana, Arial, Helvetica, sans-serif”>The proposals, according to ministry officials who spoke to the Zimbabwe Independent on condition of anonymity, are a blend of appraisals from the government’s National Economic Revival Programme (Nerp) and the business sector that have been gathering dust on government shelves.

The officials said the crux of the proposals involves a review of the exchange rate policy and the crafting of policies that would restore confidence in the farming and business sectors while at the same time seeking to bring spiralling inflation under control.

The proposals are part of the quarterly review of the performance of the economy that is sent periodically to cabinet for consideration.

The officials said some of the proposals forwarded to cabinet seek to address the currency crisis plaguing the country.

“The proposals centre on recommendations for a revision of the country’s exchange rate against the US dollar from $824 to $1 350,” said one official. “Although this still falls far short of the black market rate it will help boost the import and export sectors.”

The officials said if government implemented some of the proposals, especially the devaluation of the Zimbabwe dollar, this would boost production while curbing the country’s thriving black market.

Former Finance minister Simba Makoni fell out of favour with President Robert Mugabe after he suggested that the dollar be devalued against the greenback.

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