HARARE, May 30 (Xinhua) -- Zimbabwe's Finance Minister Mthuli Ncube has announced additional measures to stabilize the economy and local currency.

The Zimbabwean government remains firmly committed to maintaining macro-economic stability, preserving the purchasing power of the Zimbabwean dollar and restoring trust and confidence in the economy, Ncube said on Monday.

Furthermore, effective June 1, Treasury will fund the Zimbabwe dollar component of the 25 percent foreign currency surrendered by exporters to eliminate the creation of additional money supply, according to Ncube.

He also introduced a 1 percent tax on all foreign payments and a requirement to pay all excise duty on fuel in foreign currency.

The finance minister said all government agencies, including parastatals, will substantially collect fees in the local currency to promote its use, which now only constitutes about 30 percent of transactions against over 70 percent in the U.S. dollar. At the same time, payments of electricity bills by non-exporters will be made in local currency.

Ncube said that all customs duties would be payable in local currency, except for luxury goods, where the importer opts to pay in foreign currency.

Ncube said all export proceeds that remain unutilized after 90 days would be liquidated onto the interbank market, adding that the government will continue sterilizing excess liquidity by issuing Treasury bills.

"The assumption of the external obligations by Treasury and implementation of non-inflationary financing of the liabilities, coupled by sourcing of additional resources, will go a long way in reducing money supply growth and its impact on exchange rate depreciation and price increases," Ncube said. Enditem

Related

Go to Forum >>0 Comment(s)