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
-
Court delays can amount to denial of justice – Mahama
3 minutes -
NPP approves proxy voting for October 3 national officers elections
13 minutes -
Yemen’s Houthis reportedly seize strategic Red Sea port of Mokha
14 minutes -
Horse racing community hits Accra streets, petitions Presidency over demolished Racecourse
16 minutes -
Two arrested over alleged plot to kill Susu collector at Botwe in Accra
20 minutes -
Jirapa MP provides SHS prospectus items to 1,196 fresh graduates
24 minutes -
Ghana signs offshore deals with Eni, Vitol to revive oil exploration
25 minutes -
Two feared dead, several injured after trailer crashes into vehicles at Krofrom
29 minutes -
Where did we lose it? The falling standards of our airwaves and silence of regulators
30 minutes -
I remain fully committed to judicial independence – Mahama
34 minutes -
NDC opens nominations for 2026 constituency executive elections on September 15
34 minutes -
GROW2 project exceeds targets for women farmers in Northern Ghana
50 minutes -
Twenty-five dead after fire on cargo ship in eastern China
51 minutes -
The Battle For The Soul of the Ghanaian BAR: Is it a freedom of association or regulatory anarchy?
53 minutes -
Mahama urges new Supreme Court Justices to draw on diverse experience
59 minutes