THE stability of the local currency against the US$ will determine the rate at which prices of basic goods and services will be reviewed, the Confederation of Zimbabwe Industries (CZI) has said.
In its March update to members, CZI said a widening premium between the parallel market and official rate should be monitored to ensure that the cost of goods and services in the country are stable.
“The relative stability of the exchange rate brought about by the foreign exchange auction market should be sustained to achieve price stability in the economy.
“This will, however, be largely determined by a genuine price discovery mechanism on the currency market and timely settlements of bids won at the foreign exchange auction market,” sa
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.