Our govt won’t allow exchange rate distortion and corruption: Chamisa

By Nyashadzashe Ndoro | Nehanda Politics |

MDC Alliance leader Nelson Chamisa says the exchange rate disparities between the formal rate and black markets which are far apart by 100% are the biggest enablers of the economic crisis in Zimbabwe.

There have been concerns that the official rate is distorted due to the disparity between it and the black market which trades higher.

The Reserve Bank of Zimbabwe, last year introduced weekly foreign exchange auctions to determine the ZWL rate against the foreign currency. But the official rate is always surpassed by the black market rate, raising suspicion that the government might be distorting the value of the local currency.

Chamisa said exchange rate disparities and corruption were causing the economic crisis in the country. He vowed that when his party gets into power, they will make sure the problems are resolved.

“The economic ‘stability’ is fragile stability and is not going to last! The 2 giant elephants in the room are exchange rate disparities between the formal rate and black markets which are far apart by 100% (the black market rate is 2x the official rate) and corruption.

“The exchange rate disparities and the punitive export retention negatively affect exporters – the goose which lays the golden eggs. This has created arbitrage opportunities and unofficial forex trading which will worsen the disparities, total collapse of the auction system,” he said.

Chamisa said his government will institute a market-sensitive, people- centered and development-oriented sound economic policies which are predictable, consistent, investor friendly and business boosting while fostering an enabling business environment which guarantees return on investments.

“We will have a rapid accelerated transformation and a boom in the economy that would make Zimbabwe shine great and more importantly create gainful employment opportunities for all the people, raising the standard of living for the hardworking Zimbabwean people,” he said.

Zimbabwe is gripped by an economic crisis that is partly blamed on corruption by top government officials and economic mismanagement. Nehanda Radio