WASHINGTON DC —
Acting Reserve Bank of Zimbabwe governor Charity Dhliwayo is Wednesday expected to present Zimbabwe's monetary policy statement.
The statement comes at a time the economy is in free-fall with many companies and indigenous banks closing down due to liquidity constraints.
The acting governor is expected to focus on the ailing financial sector, proposals to indigenize foreign banks and the establishment of a Financial Ombudsman, among other issues.
Economist Prosper Chitambara of the Labour and Economic Development Research Institute of Zimbabwe said he does not see the policy statement bringing any joy to ordinary Zimbabweans and struggling companies.
"I think first and foremost it's important to emphasize that we don't expect much from the presentation of the monetary policy by the acting governor.
"Following the dollarisation of the economy, monetary policy has actually lost its effectiveness because for example we can no longer dertemine money supply in the economy," Chitambara said.
The statement comes at a time the economy is in free-fall with many companies and indigenous banks closing down due to liquidity constraints.
The acting governor is expected to focus on the ailing financial sector, proposals to indigenize foreign banks and the establishment of a Financial Ombudsman, among other issues.
Economist Prosper Chitambara of the Labour and Economic Development Research Institute of Zimbabwe said he does not see the policy statement bringing any joy to ordinary Zimbabweans and struggling companies.
"I think first and foremost it's important to emphasize that we don't expect much from the presentation of the monetary policy by the acting governor.
"Following the dollarisation of the economy, monetary policy has actually lost its effectiveness because for example we can no longer dertemine money supply in the economy," Chitambara said.
