THE government says it is not perturbed by the resurgent local use of the greenback, alongside the Zimbabwe dollar — adding that this is helpful in maintaining market stability and keeping the economy on a growth trajectory.
Speaking to The Financial Gazette this week, Treasury spokesperson Clive Mphambela said the forthcoming mid term review statement would see authorities consolidating the country’s current multi-currency regime that is anchored by the Zim dollar.
“We don’t view the increase in the use of the greenback as a negative thing. In fact, it is good for the economy.
“The real issue that should excite the market … is the growth of FCAs (Foreign Currency Accounts). This has grown from US$200 million to around US$1,4 billion that is sitting in the banks.
“We view these funds as shadow FCA reserves. These are funds available for external payments by individuals and corporations,” Mphambel
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.