Harare ‑ Zimbabwe needs an effective overall monetary policy framework if its currency reforms move is to succeed, the International Monetary Fund (IMF) has said.
Addressing the media Thursday in Washington DC, the United States, Gerry Rice, from the IMF communications department, said the Zimbabwe’s monetary policy framework should be supported by market-determined interest and exchanges rates, together with prudent fiscal policies.
“And our initial evaluation of (the monetary policy) which has been announced by the Zimbabwean authorities recently is that it’s a step in the right direction to address distortions that have significantly impaired those macroeconomic outcomes...,” he said.
Asked what Zimbabwean finance and economic development minister Mthuli Ncube had discussed with IMF managing director Christine Lagarde, Rice said Ncube briefed Lagarde on economic developments and reforms in the investment-hungry country.
Rice said at present, the IMF did not have a financing programme with Zimbabwe, though they would continue to have discussions with the authorities to assist them in implementing the economic reforms contained in their transitional stabilisation programme.