THE Reserve Bank of Zimbabwe (RBZ) said it announced a low key monetary policy yesterday because it is working on a comprehensive Post Elections Monetary
Policy Blue Print.
The blue print will cover 24-month recovery plan which will run from May 2008 to April 2010.
In his 2008 first quarter monetary policy statement yesterday, the Reserve Bank governor Gideon Gono said the post election monetary policy will dovetail into other government fiscal and economic blue prints under preparation by the relevant economic and sector ministries.
“As monetary authorities, we have chosen a silent issuance of this Monetary Policy Statement for strategic reasons whilst we prepare for the post-elections policy programme,” Gono said.
Gono said the bank’s economic imperatives programme will focus on the removal of economic pricing distortions in areas such as fuel, agricultural inputs and outputs, multiple interest and exchange rates, electricity, water and other municipal, and parastatals service delivery charges.
Gono said the policy will “remove untargeted general subsidies in favour of targeted and specific subsidies. Promote inward investment from across the globe, with bias towards the East, in line with government’s Look East Policy but without excluding desirable investment which meets the country’s criteria from other investors”.
The post election monetary policy will also seek to re-modify investment laws; protection of investment; respect for private property and implementing a sustainable indigenisation framework.
Finding common ground for the immediate and long-overdue lifting of sanctions against the country and securing balance of payments support from willing and cooperating partners are some of the issues Gono said will be highlighted in the blue print.
“Uplifting productivity through incentives in mining, agriculture, tourism, manufacturing and other primary and tertiary sectors of the economy will be contained in the document,” Gono said.