Audio By Carbonatix
Zimbabwe’s central bank has asked the International Monetary Fund to overlook the country’s shortcomings in achieving fiscal targets and allow a program to help restore the economy to run its course.
Eddie Cross, a member of the monetary policy committee who attended the meetings held with the Washington-based lender’s delegation on Thursday, said policy makers expected a “tough report” from the IMF team, which is in the country until Dec. 11 to review progress under a Staff Monitored Program.
“We asked them to recognize the achievements we have made in such a short space of time,” Cross said in an interview in the capital, Harare. “We urged them to recognize that our fundamentals are now sound.”
Cross said some of the achievements include a reduction in the budget deficit, the establishment of an interbank market and reducing state employee costs. An electronic interbank system will go live later this month as the central bank tries to bring transparency into the trading system. So far, 15 lenders have confirmed their participation.
However, the gains have been overshadowed by the worst economic crisis in a decade. Monthly inflation surged to 38% in October and while the statistics agency has stopped publishing an annual price-growth rate, Cross puts it at 400%. According to Bloomberg calculations, based on the statistics office’s consumer price index data, the rate was 440% in October.
A drought has also left nearly half the population of 14 million people food-insecure. Rising food costs forced the government to make an about-turn on scrapping grain subsidies.
The government will shoulder this cost and it’s likely to attract scrutiny from the IMF after it called for tighter monetary measures and curbs on government spending in its last review.
The Staff-Monitored Program is seen as a precursor to getting debt relief that’s needed to restore the economy, and is due to end in March. Cross said he’s sure the IMF would “grudgingly agree” to let the program run its course.
Latest Stories
-
Arise Ghana demands stronger commitment to end galamsey
1 minute -
96% of Ghanaian pensioners willing to work beyond retirement age – Study
5 minutes -
Ghana gets nuclear power plant simulator
11 minutes -
Temporary Akosombo power control facility to be ready by September – Energy Ministry
12 minutes -
GMTF, Atlantic Lifesciences explore local production of cancer and heart medicines
16 minutes -
GHS medical-legal claims hit GH¢400m in three years
22 minutes -
Mahama cautions Ghanaians not to take religious freedom for granted
38 minutes -
We need development pathway, not selection exercise – Sports Minister urges football stakeholders
45 minutes -
Government prioritises foundational learning to improve education outcomes
51 minutes -
Ghana, Côte d’Ivoire deepen maritime security cooperation through joint boundary inspection
57 minutes -
Three-hour rainfall exposes poor drainage system in Kadjebi
1 hour -
Ghana, China push AI innovation in healthcare
1 hour -
Give young people skills and the systems to create jobs
1 hour -
Food inflation never responded – Dr Yamson says Ghana must stop throwing money at short-term fixes
2 hours -
Oil set for second weekly rise as unsettled US-Iran war crimps supply
2 hours